2 Under-the-Radar Biotech Stocks Set to Boom in 2026

2026-01-24 14:20:00 ET

The biotech sector returned to health in 2025 after years of sickly returns. A key sign of vitality was the SPDR S&P Biotech ETF (NASDAQ: IBB) , which rose 27% in 2025, nearly doubling the 16% gain by the S&P 500 .

Lower interest rates aided the biotech bounceback, as many companies in the sector rely on a big dose of debt. Their shares also rose as the number of patent cliffs for blockbuster drugs increased, prompting pharmaceutical giants to go on a buying spree, scooping up therapies pioneered by biotechs.

Shares of Halozyme Therapeutics (NASDAQ: HALO) have increased by more than 25% over the past year, while shares of Catalyst Pharmaceuticals (NASDAQ: CPRX) have risen slightly more than 3% over that time. The two mid-cap companies, after our fiscal checkup, appear to be poised for a strong 2026, albeit for different reasons.

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