3 Small, Profitable Biotechs With Fantastic Growth
Investors could be forgiven for shying away from the stocks of small biotechs. Not only is the complex technology behind their products almost impossible for most of us to understand, the majority of these companies don't even make profits. What they usually do is plod through lengthy and uncertain drug trials while consuming huge amounts of cash.
Fortunately, there are a few small biotechs that are not only growing sales rapidly, but making a profit along the way. Three that match this description -- though with very different business models -- are Corcept Therapeutics (NASDAQ: CORT), ANI Pharmaceuticals (NASDAQ: ANIP), and Ligand Pharmaceuticals (NASDAQ: LGND). But what they have in common beyond that is that each has attributes that lessens its risk for investors, compared with most similarly sized biotechs.
Corcept Therapeutics is a drug discovery, development, and commercialization company that focuses on a single pharmacological mechanism: blocking the effects of the stress hormone cortisol. When the body overproduces cortisol, it creates a rare but serious condition known as hypercortisolism, or Cushing's Syndrome. Corcept's earnings today come from one Cushing's treatment -- Korlym -- but the company believes the future generations of the drug could have many other uses.
Source: Fool.com
