Published on 7 Mar 2024 on InvestorPlace via Yahoo Finance

3 Cutting-Edge Biotech Stocks Sitting on the Brink of Success

Biotech stocks have always been high-risk and high-reward, with the futures and fortunes of companies often decided with a single successful drug trial or Federal Drug Administration (FDA) approval. The right company can yield extravagant returns for the lucky or prudent investor. However, choosing the wrong ones can lead to losses just as significant as the potential wins.

Therefore, due diligence is important. A company announcing that it is developing a cure for cancer, MS, Huntington’s, or HIV is not enough to rank it as a buy. Investors must review whether they’ve made significant strides in their research and drug trials and if they have other products that can sell just as well.

Next, investors should check the company’s finances, that is, whether it can sustain its wonder drug’s development cycle without buckling under the weight of debt. So, let’s look at three biotech stocks that combine attractive product pipelines with solid financials.