When investors think of biotech stocks, visions of Amgen (AMGN) and Gilead (GILD) tend to dance in their heads. These companies aren’t just among the biggest in the business – they’re also a couple of the most successful in terms of revenue and profits.
However, as the old adage goes, the best things often come in small packages. Smaller biotechnology companies can and often do offer better growth prospects.
There are commonsense limits, of course. Too many biotech companies are only chasing a dream, while others are thinking too conservatively. Still others are undercapitalized, standing shoulder-to-shoulder with far bigger, better-armed outfits. There are plenty of reasons not to step into a particular biotechnology firm.
Every now and then, though, a hidden gem emerges that most investors simply don’t notice.
Here’s a closer look 10 underappreciated biotech stocks. Some are bigger than others, and each is at a different point along at least one drug-development path. In all cases, however, too many traders are looking past their plausible potential – but may not be for long.