Could This Small-Cap Biotech Stock Make You Rich?

Investors had high expectations for Aimmune Therapeutics (NASDAQ: AIMT) at the beginning of the year. Its stock performed well in 2019 -- with its shares surging by more than 30% -- and the biotech was on the verge of getting approval from the U.S. Food and Drug Administration (FDA) for Palforzia, an oral immunotherapy that can mitigate allergic reaction to peanuts. The health industry regulator gave Palforzia the green light in late January, and the drug became the first FDA-approved treatment for childhood peanut allergy.

However, Aimmune's stock has been on a downward spiral ever since, in no small part due to the COVID-19 pandemic. Year to date, shares of the company are down by 57.9%. But Aimmune could bounce back, especially considering that one of the biotech's potential competitors just hit a major roadblock.