If you are looking for stocks with more than 100% growth rates, you must search among the small cap stocks. Among these stocks, the ones belonging to the biotech sector deserve a special mention. This is because biotech sector is one of the most stable, innovative and growth generating sectors in the market today. Hence, these stocks with affordable prices are the best bets for you, if you are looking for a portfolio with maximum growth potential. All the stocks mentioned below have had their share of pleasant surprises and well-worked out growth strategies for last year, which have resulted in more than 100% growth for them as of now.
Breakthrough in cancer treatments
One of the small biotech companies that grew to a great extent during 2014 is Curis. With a market capitalization of just about $324 million, Curis manufactures drugs for treatment of cancers. During the first half of 2014, its cancer drug, CUDC-47, got the approval from the Food and Drug Administration (FDA), which gave a huge impetus to the company’s shares. Currently the stock movement has reported a growth of 110%, which gives enough reasons for investors to hold on to their stakes in this company. The company is looking at a successful year ahead as its partnership deal with the gene therapy company, Aurigene is all set to help Curis to develop some breakthrough treatments in the cure of cancer. The stock movement of Curis for the last few months can be seen below:
Acquisition deals bring success
The other biotechnology company that saw a huge growth (118%) in its share prices for 2014 was Foundation Medicine (FMI, Financial). During January 2015, share prices skyrocketed magically upon the news that close to 56.3% of the company would be bought by the pharmaceutical major, Roche (RHHBY, Financial). This deal worth $1.03 billion is expected to bring a huge positive influence on the performance of Foundation Medicine. Through this deal, the cancer drugs of this small biotech company will find a bigger and wider market that it never knew existed. With a market capitalization of $1.4 billion, Foundation Medicine is sitting pretty strongly in the stock market. The share price movement of the company for the last few months is seen below:
Innovative medical treatments pave the way for success
Yet another biotech company that focuses on cancer treatments is another small-cap stock that figures on the list of stocks with great potential. We are talking about Cellular Biomedicine Group (CBMG, Financial). The company witnessed a whopping 132% growth last year due to its innovative business strategies and cancer treatment drugs. For the last month alone, share prices sky rocketed by 73%, providing great joy for investors. Apart from specializing in cancer treatments, Cellular Biomedicine also manufactures medicines to treat chronic ailments like osteoarthritis and other disorders of the nerves. In a bid to bring about a revolution in anti-aging treatments, the company has been involved in the innovative use of stem cells to restore degenerated cartilage and other damaged tissues. With a market capitalization of $328 million, Cellular Biomedicine is one of the stocks that investors would really love to take a stake in. Share price trend for the last few months is seen below:
Conclusion
The end point is that investors who are looking for great returns on affordable investments should prudently choose biotech stocks. Not just any biotech stock – stocks that are small-cap and stocks that deal in cancer treatments. Going by the trend of the above companies, it looks like these companies are sitting pretty for another two to three years at least as lots of high profile approvals from the FDA are on the pipeline for them.
