2 Biotech Stocks That Could Make You Richer
The shine has come off biotech stocks. For example, the exchange-traded fund SPDR S&P Biotech ETF (NYSEMKT: XBI) is down more than 20% so far in 2022, and more than 41% over the past 12 months. Biotech stocks still hold plenty of attraction, though, because the right ones can make investors wealthy.
There are plenty of reasons for the current slump in biotech. Rising interest rates make borrowing more expensive, and many biotech companies need ready financing to expand. Their growth potential is there, but only if they can make it to the finish line with marketable drugs.
Intercept Pharmaceutical (NASDAQ: ICPT) and Exelixis (NASDAQ: EXEL) have a lot in common. Both stocks have seen their shares drop over the past 12 months, but each biotech company has a franchise drug that's already producing solid revenue numbers.
Source Fool.com
