Looking for stocks with explosive growth potential? The biotech industry is an excellent place to start. Small drugmakers often see their shares skyrocket following positive clinical or regulatory developments. However, these companies also tend to have substantial downside, which is why it's essential to think twice -- and consider the pros and cons -- before even thinking about investing.

Let's look at two mid-cap biotechs that could see their shares soar this year: Madrigal Pharmaceuticals (NASDAQ: MDGL) and Viking Therapeutics (NASDAQ: VKTX). Are these stocks worth a second look for investors focused on the long term?

Madrigal Pharmaceuticals' market capitalization is just $4.4 billion. However, the diminutive biotech is beating some of its much larger peers in a potentially lucrative market. Madrigal is on the verge of earning approval for a treatment for nonalcoholic steatohepatitis (NASH) in the U.S. Patients with NASH accumulate dangerous levels of fat in the liver, which leads to scarring and many other complications.

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Source Fool.com