Top 15 Biotechnology Stocks by Marvin Score
Marvin's rules ranked 15 biotechnology stocks by Overall score, led by BioCryst and Rigel. Scores compare each company with other biotech firms, and many on the list still report operating losses.
Biotechnology companies research and develop medicines and related treatments. This list shows the 15 biotechnology stocks that Marvin's rules rank highest by Overall score, starting with BioCryst Pharmaceuticals and Rigel Pharmaceuticals.
Many biotech companies spend heavily before their products earn steady revenue, so negative margins are common here. Revenue growth can also look extreme when a company starts from a very small base. Read each growth figure together with its margins.
A high score does not mean a company is without risk. Marvin's scores describe how a company compares with other biotechnology companies today, not how its shares will perform. Treat this list as a starting point for your own research.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size of roughly three hundred million dollars. It ranked them by Overall score, highest first, within the Biotechnology industry. Scores run on a scale that tops out at one hundred and are relative to each company's own industry. They show how a company compares with other biotechnology firms, not with the whole market. Where two companies share a score, the order follows Marvin's rules.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Biotechnology industry, highest Overall score first.
The stocks, one by one
BioCryst Pharmaceuticals, Inc. BCRX
BioCryst has an Overall score of 97. Revenue grew 94.1% last fiscal year, gross margin is 97.8%, and free cash flow margin is 39.7%. Caution: operating margin is -33.3%, a loss, and return on equity and debt figures are unavailable.
Rigel Pharmaceuticals, Inc. RIGL
Rigel has an Overall score of 97, but its Quality score is a lower 70. Operating margin of 31.5% shows profit on operations, and return on equity is 75.7%. Caution: free cash flow and debt figures are missing, so the picture is incomplete.
Arrowhead Pharmaceuticals, Inc. ARWR
Arrowhead scores 96 on Quality and 97 on Opportunity. Revenue growth of 23258.2% is huge, which usually means a very low starting point. Caution: operating margin is -33.8% and return on equity is -68.7%, both signs of current losses.
PTC Therapeutics, Inc. PTCT
PTC Therapeutics grew revenue 114.5% last fiscal year and has a positive operating margin of 12.5%. Quality scores 96. Caution: free cash flow margin is slightly negative at -3.9%, and gross margin, return on equity and debt data are not available.
Madrigal Pharmaceuticals, Inc. MDGL
Madrigal grew revenue 432.1% last fiscal year and carries a modest debt-to-equity ratio of 0.66. Caution: it is still losing money, with an operating margin of -25.1%, free cash flow margin of -16.1% and return on equity of -62.1%.
Mirum Pharmaceuticals, Inc. MIRM
Mirum has an Overall score of 94 and grew revenue 54.7% last fiscal year, solid expansion. Caution: it spends far more than it earns, with an operating margin of -134.9% and a free cash flow margin of -37.0%. Debt and return figures are unavailable.
Travere Therapeutics, Inc. TVTX
Travere reports a very high gross margin of 98.6% and revenue growth of 110.5%. Its operating margin is a small loss at -6.8%. Caution: return on equity is deeply negative at -177.2%, and free cash flow and debt figures are missing.
CorMedix Inc. CRMD
CorMedix grew revenue 617.0% last fiscal year and earned a return on equity of 40.6%. Its Quality score is 88 and its Opportunity score is 85. Caution: margin and debt figures are unavailable, so profitability is hard to judge fully.
Septerna Inc SEPN
Septerna's revenue growth of 4174.5% comes from a tiny base, and its free cash flow margin is 106.3%. Caution: operating margin is -44.0% and return on equity is -6.3%. The gap between the operating and cash figures deserves a closer look.
Stoke Therapeutics, Inc. STOK
Stoke has a Quality score of 95, but its Opportunity score is just 79, the lowest here. Revenue grew 404.5%. Caution: operating margin is -809.7% and free cash flow margin is -654.9%, so losses are very large compared with sales.
Tarsus Pharmaceuticals, Inc. TARS
Tarsus grew revenue 146.7% last fiscal year, has a positive free cash flow margin of 9.2%, and carries low debt, with a debt-to-equity ratio of 0.26. Caution: operating margin is slightly negative at -8.0% and return on equity is -13.4%.
Axsome Therapeutics, Inc. AXSM
Axsome grew revenue 65.5% last fiscal year and has an Opportunity score of 96. Caution: its debt-to-equity ratio of 2.70 is the highest on this list, and operating margin is -24.0% with return on equity of -230.1%.
IDEAYA Biosciences, Inc. IDYA
IDEAYA's revenue growth of 3024.4% is very large, probably from a small starting base, and its Opportunity score is 94. Caution: return on equity is -14.6%, and margin and debt figures are unavailable, so there is little to judge profitability by.
Iovance Biotherapeutics, Inc. IOVA
Iovance grew revenue 60.6% last fiscal year, with a gross margin of 48.4%. Its Opportunity score is 97. Caution: operating margin is -92.7% and free cash flow margin is -91.2%, meaning heavy losses relative to sales.
Adaptive Biotechnologies Corporation ADPT
Adaptive Biotechnologies grew revenue 54.8% last fiscal year, with a gross margin of 75.6% and a moderate debt-to-equity ratio of 0.53. Caution: operating margin is -12.2% and return on equity is -44.7%, so it is not yet profitable.
Common questions
Why do so many biotech stocks have negative margins?
Developing a medicine takes years of research and testing, and the costs come well before sales. Many biotech companies therefore spend more than they earn, which shows up as negative operating and free cash flow margins.
What does it mean that Marvin's scores are relative to the industry?
Each company is compared only with other biotechnology companies. A high score means the company looks strong against its biotech peers on measures like quality and opportunity. It does not say how it compares with companies in other industries.
Is a high Marvin score a reason to buy a stock?
No. The scores describe how a company compares with its industry today. They are not a forecast or a recommendation. Biotech results can swing widely, so check each company's finances and risks yourself.
Keep reading
- Top 15 Healthcare Stocks by Marvin Opportunity Score
- Top 15 Healthcare Stocks Right Now, Ranked by Marvin Scores
- Top 15 Healthcare Companies With the Strongest Businesses
- Top 20 Small-Cap Stocks Ranked by Marvin Scores
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.