The Cream Of The Crop: 5 Biotechs That Outrank Most Stocks

Biotech stocks are trading sideways after the Department of Health and Human Services fired thousands of employees from U.S. health agencies and amid threats of tariffs on drug imports.

Shares whipsawed in early April after President Donald Trump and his administration, in a matter of days, announced "major" tariffs would soon be coming for pharmaceuticals, then delayed country-specific reciprocal tariffs for 90 days for most trading partners, only to clarify the delay doesn't pertain to sectoral tariffs.

↑ X NOW PLAYING CRSP Stock On Wild Ride After FDA's Historic Approval. These Gene Editing Treatments Could Come Next.

Now, companies are bracing for drug pricing reform that aims to align the prices of medicine in the U.S. with an international index. Critics say this would reduce innovation in the U.S.

Investor's Business Daily's Medical-Biomed/Biotech industry group has fallen 16.4% this year, as of the close on May 15. The 712-company industry group ranks No. 48 out of 197 groups Investor's Business Daily tracks. Further, the Relative Strength Rating of 75 — a measure of 12-month performance against all other groups — has climbed from a weaker 68 a month ago.

Robert F. Kennedy Jr., the new HHS secretary, is a controversial vaccine skeptic who has touted vitamin A as a treatment for measles amid a devastating outbreak and has pledged to find the cause of autism in mere months. One key Food and Drug Administration official resigned, citing RFK Jr.'s "misinformation and lies."

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:

• Exelixis (EXEL)
• Catalyst Pharmaceuticals (CPRX)
• CorMedix (CRMD)
• TG Therapeutics (TGTX)
• ADMA Biologics (ADMA)

Exelixis Focuses On Cancer Drugs

Exelixis now leads 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.

During the first quarter, Exelixis reported adjusted earnings of 62 cents per share and $555.4 million in sales. Both measures easily beat forecasts. The company also raised its full-year sales outlook by $100 million. Shares shot up nearly 21% on May 13, the day after Exelixis' report.

The company now expects $2.25 billion to $2.35 billion in sales for 2025. That includes $2.05 billion to $2.15 billion in sales of its products.

The biotech stock is now well above its 50-day and 200-day moving averages.

Exelixis stock has a strong Composite Rating of 98, but an improved Relative Strength Rating of 97. The CR is a measure of fundamental and technical performance.

The biotech stock lands on IBD's Tech Leaders list.

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 (TEVA) that will prevent the drugmaker from launching a generic version of Firdapse until 2035.

During the first quarter, Catalyst earned 71 cents per share, minus some items, on $141.4 million in sales. Earnings rocketed 77.5% year over year, while sales climbed nearly 44%. Both measures topped forecasts.

The biotech stock is trading above its 50-day and 200-day lines inside a consolidation with a buy point at 26.16.

Catalyst stock has a strong CR of 97 and an RS Rating of 88. The RS Rating has declined recently, however. It's down from 91 a month ago.

Still, the biotech stock lands on the Tech Leaders list.

A New Top Biotech Stock

Cormedix joins the list of top-rated biotech stocks for the first time in May.

The company's lead product, DefenCath, was approved in November 2023 and launched for patients in hospitals in July 2024. DefenCath is a combination of drugs called taurolidine and heparin to reduce the risk of catheter-related bloodstream infections in kidney failure patients receiving chronic dialysis through a central venous catheter.

During the first quarter, Cormedix earned an adjusted 30 cents per share on $39.1 million in sales. Earnings reversed from a year-earlier loss of 25 cents and beat forecasts for a 26-cent gain. Cormedix didn't have any year-earlier sales. First-quarter sales topped calls for $36.9 million.

Cormedix stock has bounded off its 50-day moving average and has a strong RS Rating of 97. Shares have a slightly lower CR of 92.

TG Therapeutics Takes On Roche

TG Therapeutics has fallen off slightly, though investors are closely watching its efforts to treat relapsing forms of multiple sclerosis. The company's drug, Briumvi, starts with two infusions two weeks apart. Then, patients receive an hourlong infusion every six months.

The biotech company is going up against Roche (RHHBY), which sells Ocrevus. But Ocrevus needs two first doses to load the drug and then the every-six-months infusion takes two hours of longer.

During the first quarter, Briumvi generated $119.7 million in sales, beating forecasts and more than doubling year over year. The company also earned an adjusted 3 cents per share. The latter missed forecasts. But TG is expected to become more deeply profitable over the next three years.

TG stock has a strong CR of 92 and a better RS Rating of 95. But shares are trading below their 50-day moving average.

The biotech stock lands on the Tech Leaders list.

Biotech Stock Is Under Pressure

ADMA Biologics has been on something of a rollercoaster ride recently. The company makes IV products that infuse patients with antibodies to fight viral infectious. It does this using donated plasma from healthy volunteers.

Last year was rocky for ADMA. Its independent auditor unexpectedly resigned in October, leading shares to plummet. In early November, ADMA signed a new auditor and the biotech stock recovered. But shares hit the skids again this week after the company reported its first-quarter earnings.

During the March quarter, ADMA earned 14 cents per share on $114.8 million in sales. Earnings jumped nearly 36% as sales rose 40%. But earnings lagged expectations by a penny and sales lagged analysts' call for $116.4 million.

ADMA stock has broken out of a cup-with-handle base, topping a buy point at 20.70 on April 14. But the biotech stock pulled back as much as 9.2% from that entry on April 21, triggering a sell rule. Now, shares are below their 50-day line, though remain above their 200-day line.

Still, the biotech stock has a matching Composite and Relative Strength ratings of 94.

The stock lands on the Tech Leaders list.

Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.

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