If you're interested in biotech stocks, you're not alone. The SPDR S&P Biotech ETF has outperformed the S&P 500 in eight of the past 10 years, so the industry has been a great source of market-beating ideas.
Biotech investing isn't easy, though. Clinical-trial failures, expiring patents, and stiff competition mean there's plenty of risk associated with owning biotech stocks. Nevertheless, the potential rewards associated with investing in the industry could make owning stocks with upcoming catalysts a great idea. For example, BioMarin (NASDAQ: BMRN), Iovance Biotherapeutics (NASDAQ: IOVA), and Immunomedics (NASDAQ: IMMU) have events coming up that could make buying shares this year smart.
BioMarin could be about to revolutionize how doctors treat hemophilia with a mega-blockbuster indication worth $10 billion in revenue annually.