Biotech stocks are trading down this year, taking a beating on broader market concerns related to the economy. There have also been concerns about how Robert F. Kennedy Jr. might approach the biotech segment as the new Health Secretary.
Kennedy is a well-known vaccine skeptic. In February, the Food and Drug Administration — one of the agencies under the Department of Health and Human Services umbrella — unexpectedly canceled the annual meeting to select the strains targeted by this year's suite of flu shots. The FDA issued its own recommendations on March 13, but without input from independent experts, according to CNN.
Reports also emerged that HHS is considering pulling the $590 million in federal funds granted to Moderna to develop a bird flu vaccine.
Kennedy, or RFK Jr., is also open to the use of psychedelics in therapeutic settings. But even shares of biotech companies working in that space have struggled recently.
On a year-to-date basis, the biotech industry group has fallen almost 9% as of morning trades on March 28. The 720-company industry group ranks No. 51 out of 197 groups Investor's Business Daily tracks. Further, the Relative Strength Rating of 76 — a measure of 12-month performance against all other groups — has fallen from 93 just a year ago.
But it's key to watch specific measures when examining stocks. In terms of fundamental and technical metrics, some biotech stocks are showing strength. The best biotech stocks trading above 10 right now are:
- Catalyst Pharmaceuticals
- Halozyme Therapeutics
- Exelixis
- Alkermes
- GeneDx
Highly Rated Catalyst Stock
Catalyst Pharmaceuticals licenses approved or soon-to-be approved treatments for rare diseases and diseases of the central nervous system.
Today, the company has three products. Firdapse treats a neuromuscular condition that often affects small cell lung cancer patients. Fycompa is a seizure treatment. Catalyst also has a Duchenne muscular dystrophy drug called Agamree.
Catalyst struck a deal with Teva Pharmaceutical that will prevent the drugmaker from launching a generic version of Firdapse until 2035.
During the fourth quarter, Catalyst earned 70 cents per share, minus some items, and reported $141.8 million in sales. Both metrics easily topped analysts' forecasts. Earnings surged 32% and sales rose about 30%. This year, Catalyst expects $545 million to $565 million in sales.
The biotech stock is trading above its 50-day moving average, and remains north of its 200-day line. Shares broke out of a consolidating with a buy point at 24.64 on March 24. Catalyst stock is now trading in the 5% buy zone.
Catalyst stock has a strong Composite Rating of 98 and a Relative Strength Rating of 95. Its relative strength line hit a new high on March 21.
Catalyst stock is also an IBD Tech Leader. Shares rank fourth on the IBD 50 list of elite growth stocks.
This Biotech Stock Gets Under Your Skin
Halozyme Therapeutics is an expert in drug delivery.
The company is known for its Enhanze technology, which helps deliver drugs under the skin via a subcutaneous injection.
The technology is behind some of the biggest drugs including Johnson & Johnson's Darzalex Faspro and Roche's Herceptin. Both are cancer treatments. Halozyme also won approval for a subcutaneous form of Roche's multiple sclerosis drug. It's selling under the name Ocrevus Zunovo.
Recently Halozyme reported adjusted earnings of $1.26 per share on $298 million in sales for the fourth quarter. Both measures topped forecasts, with earnings growing almost 54% and sales climbing nearly 30%. For 2025, Halozyme expects $1.15 billion to $1.225 billion in sales, up 13% to 21%. The company also guided to 17% to 26% adjusted profit growth.
Halozyme stock has a strong Composite Rating of 98, and a Relative Strength Rating of 94.
Shares broke out of a consolidation with an entry at 65.53 on March 24. But the biotech stock later fell below its entry. Halozyme shares remain above their 50-day and 200-day lines, according to MarketSurge.
Halozyme also lands on the IBD Tech Leaders list.
Exelixis Focuses On Cancer Drugs
Exelixis is a relatively new addition to the list of top biotech stocks. The company has made a name for itself as a cancer treatment specialist. It sells Cabometyx, a treatment for several forms of kidney, liver and thyroid cancer. The company's Cometriq treats thyroid cancer.
In the December quarter, Exelixis earned 55 cents per share, minus some items, on $567 million in sales. Earnings beat forecasts by a dime per share and grew about 67% year over year. Sales rose more than 18% and topped projections for $564 million.
The company also guided to $2.15 billion to $2.25 billion in sales for 2025. That includes $1.95 billion to $2.05 billion in sales of its products.
The biotech stock is above its 50-day and 200-day lines. Shares have a Composite Rating of 97 and a lower RS Rating of 95.
The biotech stock lands on the Tech Leaders list as well. Notably, Exelixis shares rank No. 27 on the IBD 50.
Alkermes Returns As A Top Biotech
Alkermes is well known for its neuroscience focus. The company makes Lybalvi, a treatment for bipolar one and schizophrenia. It also has another schizophrenia drug called Aristada and Vivitrol, a treatment for alcohol dependence.
In the fourth quarter, Lybalvi sales climbed 37% to $77 million. Aristada sales were bigger at $96.6 million, but grew a less bullish 16%. Vivitrol sales surged 31% to $134.1 million. Lybalvi sales came up short, while Aristada and Vivitrol sales beat forecasts.
Shares surged about 7.5% on Feb. 13, the day after Alkermes reported its fourth-quarter earnings.
The biotech stock is forming a flat base with a buy point at 36.45. But shares are trading in line with their 50-day moving average.
Alkermes shares have a Composite Rating of 96, but a lower Relative Strength Rating of 91.
Alkermes stock lands on the IBD Tech Leaders list, but has dropped off the IBD 50.
GeneDx Makes Its Way Back
GeneDx has returned to the list of top-notch biotech stocks.
The company makes sequencing tests that scan a person's exome or genome. The exome accounts for all protein-coding genes within a person's DNA, while the genome accounts for all genes, regardless whether they code for proteins.
During the fourth quarter, GeneDx earned an adjusted 77 cents per share on $95.6 million in sales. Earnings flipped from a year-earlier loss, while sales climbed almost 65%.
The biotech stock rocketed nearly 48% on Feb. 18 after GeneDx announced a rapid test to deliver results in as soon as 48 hours to help critically ill newborns and children in a hospitals' intensive care units.
Shares have a perfect Relative Strength Rating of 99 and a strong Composite Rating of 98.
The biotech stock is an IBD Tech Leader and ranks No. 16 on the IBD 50.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
