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

• Halozyme Therapeutics and Catalyst Pharmaceuticals are notching double-digit increases successful gross and EPS.

• With small indebtedness connected their equilibrium sheets, these companies tin see acquisitions.

• Neither banal looks overpriced, with valuations beneath the assemblage average.

• 10 stocks we similar amended than Halozyme Therapeutics ›

The biotech assemblage returned to wellness successful 2025 aft years of sickly returns. A cardinal motion of vitality was the SPDR S&P Biotech ETF (NASDAQ: IBB), which roseate 27% successful 2025, astir doubling the 16% summation by the S&P 500.

Lower involvement rates aided the biotech bounceback, arsenic galore companies successful the assemblage trust connected a large dose of debt. Their shares besides roseate arsenic the fig of patent cliffs for blockbuster drugs increased, prompting pharmaceutical giants to spell connected a buying spree, scooping up therapies pioneered by biotechs.

Shares of Halozyme Therapeutics (NASDAQ: HALO) person accrued by much than 25% implicit the past year, portion shares of Catalyst Pharmaceuticals (NASDAQ: CPRX) person risen somewhat much than 3% implicit that time. The 2 mid-cap companies, aft our fiscal checkup, look to beryllium poised for a beardown 2026, albeit for antithetic reasons.

Halozyme, based successful San Diego, is simply a pick-and-shovel banal with little costs than astir biotech stocks due to the fact that it focuses connected drug-delivery systems, not therapies. It is successful the process of acquiring a competitor, Elektrofi, which uses a antithetic drug-delivery system.

Halozyme licenses its Enhanze drug-delivery level to different biopharmaceutical companies, enabling them to optimize intravenous and subcutaneous (under-the-skin) dosing. The Enhanze level is already utilized successful 10 drugs, including 2 of the apical crab therapies, Herceptin, a Roche drug utilized to dainty bosom crab and tummy crab and Johnson & Johnson therapy Darzalex Faspro, utilized to dainty the humor cancer, aggregate myeloma.

Halozyme began receiving further royalty gross this twelvemonth arsenic Opdivo, a coagulated tumor therapy sold by Bristol Myers Squibb, received support successful Europe successful May for its subcutaneous use. Halozyme isn't arsenic affected by tariff concerns arsenic its manufacturing is successful the U.S.

Halozyme's fiscal fittingness is demonstrated by beardown third-quarter numbers with grounds gross and net per stock (EPS). Third-quarter gross was up 22% twelvemonth implicit twelvemonth to $354 million, with royalty gross of $236 million, up 52% implicit the aforesaid play a twelvemonth ago. Third-quarter net per stock (EPS) jumped 36% twelvemonth implicit twelvemonth to $1.43. It besides trimmed its nett semipermanent indebtedness from $1.5 cardinal to $800 million.