3 No-Brainer Biotech Stocks to Buy for $200 Right Now

Why do investors love biotech stocks? Because these players are often working on game-changing technology that could lead to tomorrow’s game-changing treatment — and potentially, blockbuster revenues. As an investor, you often have to be patient because a company takes years to bring a candidate through development and reach the billion dollar revenue stage. And you have to be comfortable with a little risk, because candidate failure is always a possibility.

But if you pick quality companies with strong pipelines and at least one of their potential products succeeds, you could see significant gains over time. And today, for just $200, you can enter three companies that have reached or are nearing the finish line and have what it takes to grow for the long term. Let’s check out these three no-brainer biotech buys.

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1. Viking therapeutics

Viking therapeutics (VKTX 11.31%) is working on a candidate designed to address one of today’s biggest growth areas: weight loss. The weight loss drug market could reach $100 billion by the end of the decade, according to the report Goldman Sachs Research. Today, the big pharmaceutical companies Eli Lilly and Novo Nordisk dominate here, but the demand is so high that they haven’t been able to keep up with it — so there’s room for additional players.

Viking reported fantastic results from trials of its injectable candidate and the oral form of this potential drug. It works in the same way as Lilly’s current drugs, Mounjaro and Zepbound, by acting on blood sugar levels and appetite. The company is now preparing to advance the injectable candidate into a Phase 3 study and the oral candidate into Phase 2.

The biotech has been known to soar on good news, rising about 120% in one trading session earlier this year as it reported positive test results and is up more than 190% so far this year. If the Viking prospect continues to impress, more big wins may be on the horizon.

2. Modern

Modern (MRNA 0.29%)a coronavirus vaccine giant, has struggled as that market opportunity continues to shrink. In its most recent quarter, the biotech again cut its revenue forecast — to a range of $3 billion to $3.5 billion, down from an earlier estimate of $4 billion. But it’s important to keep a few things in mind.

First, the market for coronavirus vaccines may not be as big as it once was, but it could still generate billions of dollars in annual revenue for the company over time. And Moderna recently reported positive data from a Phase 3 study of its combination flu/coronavirus vaccine candidate — such a product could attract a large audience annually. And secondly, Moderna has a large pipeline and is making progress in a number of late-stage programs, including a personalized cancer vaccine.

All this means that in the coming years Moderna’s revenues could increase. Meanwhile, the company has reduced operating costs to bring expenses more in line with revenue opportunities. Moderna stock may be down and out now, but patient investors could stand to gain big over the long term by buying shares on the decline.

3. CRISPR Therapeutics

CRISPR Therapeutics (CRSP -0.33%) climbed double digits last year as investors bet on its ability to win approval for its gene-editing therapy, Casgevy. That product, to treat the blood disorders sickle cell disease and beta thalassemia, has crossed the finish line and could ultimately drive revenue growth at CRISPR Therapeutics.

Why do I say “possibly”? Because the treatment process is long, requiring months, that means it will take time for the biotech to generate significant revenue. And that may be why investors have neglected the stock lately. But it’s worth picking up shares of CRISPR Therapeutics and continuing to benefit not only from Casgevy down the road, but potentially other products as well.

CRISPR Therapeutics is working on candidates in oncology, autoimmune diseases and diabetes. The company’s gene-editing technology could lead to game-changing products because the changes correct a faulty gene — resulting in functional cures. And with $2 billion in cash, this biotech has the resources to see its candidates through development.

All of this makes CRISPR Therapeutics a definite buy now while it’s on the decline — and one that could pay off big over the long term.