The bear market is slamming biotech stocks as hard as any. Shares of the industry-tracking SPDR S&P Biotech ETF (NYSEMKT: XBI) are down by more than 33% so far this year, and its five-year total return is just below breakeven thanks to its dramatic collapse in 2021.

With sentiment about biotech so persistently bad, bargain-hunting investors should be on the prowl, as there are bound to be a few diamonds in the rough out there. The trouble is, how do you find them? There's one technique in particular that's invaluable for identifying the cheapest of the cheap in the industry. 

Let's assume you're an investor who wants to buy shares of inexpensive biotech companies that have a chance of growing by 10x or even more. To find that kind of opportunity, you'll need to look at younger biotechs that don't yet have a product on the market, as companies that have succeeded in commercializing a drug or technology are rarely valued as attractively.

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Source Fool.com