Invest in the Best Biotech Stocks for Future Growth
Biotech Stock Investment Opportunities
These two biotech stocks could be big winners in the years ahead. Biotech stocks are susceptible to changes in interest rates, primarily due to the high costs associated with product development. Recent studies show that the average cost of developing a new drug stands at a staggering $2.3 billion.
Why Biotech Companies Turn to Loans
To manage substantial costs, biotech companies often turn to loans as a crucial part of their financing strategy. However, the interest on these loans can eat into future free cash flows, making their stocks especially vulnerable to higher rates.
Investing in Undervalued Biotech Stocks
Discover the potential of Cytokinetics and Viking Therapeutics amidst the current market landscape. Analysts project significant growth opportunities for these companies, especially with their promising drug candidates poised for success.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.