Biotech Stocks: The Top 5 To Watch As Shares Trend Sideways

Biotech stocks have been on a roller-coaster ride, but continue to outperform the broader market.


In 2020, the industry was thrust into the pandemic limelight as Pfizer (PFE) and its partner BioNTech (BNTX), along with Moderna (MRNA) and Johnson & Johnson (JNJ), launched a trio of Covid vaccines. But as society learned to live with Covid — and other concerns around the economy, inflation and politics took center stage — interest in biotech fell by the wayside.

Shares of Investor’s Business Daily’s biotech industry group hit a downward slope from February 2021 to June 2022. Though things began to look up, initially, biotech stocks have mostly traded sideways since last fall. Today, the entire group has a Relative Strength Rating of 89, which puts them in the top 11% of all stocks in terms of 12-month performance, according to IBD Digital.

The group is ranked No. 24 out of 197 industry groups. Meanwhile, the pharma group ranks No. 93.

But it’s key to watch specific measures when examining stocks. In terms of fundamental and technical measures, the best biotech stocks trading above 10 today are:

Catalyst Pharmaceuticals (CPRX)
Biomarin Pharmaceutical (BMRN)
Vertex Pharmaceuticals (VRTX)
Alvotech (ALVO)
Horizon Therapeutics (HZNP)

The No. 1 Biotech Stock

Catalyst is the No. 1 biotech stock, leading an industry group of more than 800 companies.

Catalyst recently added a second product to its lineup. Through a deal with Eisai (ESALY), Catalyst can now sell anti-seizure medicine Fycompa in the U.S. Catalyst also sells Firdapse, a treatment for Lambert-Eaton myasthenic syndrome, or LEMS. LEMS is a rare autoimmune condition that saps muscle strength and often occurs in lung cancer patients.

Sales are growing, but Teva Pharmaceutical (TEVA) recently said it plans to launch a generic version of Firdapse. Teva says the patents covering Firdapse are invalid and not enforceable. Catalyst now has almost two months to respond to Teva’s filing.

Shares of Catalyst tumbled below their 50-day moving average on the Teva news, shows.

Catalyst stock…


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