Some biotech stocks are positioned to deliver outsized returns in a short period, but those that do generally come with a healthy amount of risk.

Consider, for instance, Editas Medicine (NASDAQ: EDIT) and BioXcel Therapeutics (NASDAQ: BTAI). These two small-cap biotechs are looking forward to developments that could send their shares soaring next year, and both are looking to execute strategies that could make them successful over the long run.

However, the potential downsides are massive, too. Let's consider why Editas Medicine and BioXcel Therapeutics are worth keeping an eye on right now, and whether the potential rewards of investing in these companies outweigh the risks. 

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Source Fool.com