The Best Biotech Stocks to Buy

Investing in biotechnology stocks has always required a high risk tolerance and the patience to wait years, even decades, for results. These companies drive medical innovation, developing therapies that can revolutionize healthcare and offer significant long-term growth potential.

Over the past 12 months, the Morningstar US Biotechnology Index rose 15.39%, while the Morningstar US Market Index gained 14.71%.

The 5 Best Biotech Stocks to Buy Now

These were the most undervalued biotech stocks that Morningstar’s analysts cover as of Feb. 4, 2026.

1. Intellia Therapeutics NTLA
2. Crispr Therapeutics CRSP
3. BioMarin Pharmaceutical BMRN
4. Jazz Pharmaceuticals JAZZ
5. Royalty Pharma RPRX

To come up with our list of the best biotech stocks to buy now, we screened for:

• Biotechnology stocks that are undervalued, as measured by our price/fair value metric.
• Stocks that earn narrow or wide Morningstar Economic Moat Ratings, as well as companies that do not have a moat. We think companies with narrow economic moat ratings can fight off competitors for at least 10 years.
• Stocks that earn a Low, Medium, High, or Very High Morningstar Uncertainty Rating, which captures the range of potential outcomes for a company’s fair value.

Here’s a little more about each of the best biotech stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of Feb. 4, 2026.

Intellia Therapeutics

• Morningstar Price/Fair Value: 0.46
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: None
• Industry: Biotechnology

Intellia Therapeutics is the most affordable stock on our list of the best biotech stocks to buy. Intellia Therapeutics is a gene-editing company focused on the development of Crispr/Cas9-based therapeutics. Intellia Therapeutics is trading 54% below our fair value estimate of $27 per share.

Intellia Therapeutics is a gene editing company focused on the development of Crispr/Cas9-based therapeutics. Intellia’s technology platform specializes in Clustered Regularly Interspaced Short Palindromic Repeats (Crispr)/Cas9, which precisely cuts DNA to disrupt, delete, correct, and insert genes to treat genetically defined diseases. Crispr/Cas9 has created a new class of medicines, which are well-suited for targeting rare diseases or other disorders that are caused by genetic mutations.

CRISPR/Cas9 works by having Crispr (pieces of DNA sequences) guide Cas9 (an enzyme that can cut and edit DNA) to edit, alter, or repair genes. Intellia is utilizing this gene knockout approach to remove unwanted proteins using its proprietary lipid nanoparticle delivery system. Intellia has leveraged its expertise in Crispr/Cas9 gene editing to advance a pipeline of in vivo and ex vivo therapies for diseases with high unmet medical needs.

We believe Intellia’s proprietary technology has the potential to build blockbusters in rare diseases with limited treatment options available. Intellia currently has no approved drugs and a relatively early-stage pipeline, so we refrain from awarding the company an economic moat.

Intellia’s most advanced in vivo candidates are Nex-z (formerly NTLA-2001) for the treatment of transthyretin amyloidosis, or ATTR, and NTLA-2002 for the treatment of hereditary angioedema, or HAE. Nex-z is part of a co-development and co-promotion agreement with narrow-moat Regeneron, in which Intellia is the clinical and commercial lead party and Regeneron is the participating party. Regeneron shares in 25% of worldwide development costs and commercial profits for the ATTR program. We like that Intellia will retain 75% of economic profits of Nex-z, if approved, and the company also has the expertise and financial support of Regeneron to offset some of the development costs. In addition, we appreciate that NTLA-2002 is wholly owned by Intellia.

While Intellia does not currently have approved products, the company provides long-term investors with pure-play exposure to gene-editing technology.

Read more about Intellia Therapeutics here.

Crispr Therapeutics

• Morningstar Price/Fair Value: 0.47
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: None
• Industry: Biotechnology

Crispr Therapeutics is a gene editing company focused on the development of Crispr/Cas9-based therapeutics. Crispr Therapeutics looks 53% undervalued. This cheap stock has a fair value estimate of $106 per share.

Crispr Therapeutics is an emerging gene editing company focused on the development of Crispr/Cas9-based therapeutics. The company’s proprietary platform specializes in clustered regularly interspaced short palindromic repeats (Crispr)/Cas9, which precisely cuts DNA to disrupt, delete, correct, and insert genes to treat genetically defined diseases. Crispr’s emerging technology has led to a new class of therapies, which are well-suited for targeting rare diseases or other disorders that are caused by genetic mutations.

Crispr/Cas9 works by having Crispr (pieces of DNA sequences) guide Cas9 (an enzyme that can cut and edit DNA) to edit, alter, or repair genes. We think Crispr Therapeutics’ proprietary technology has the potential to build blockbusters in rare diseases with limited treatment options available.

Crispr Therapeutics is focused on developing and commercializing novel therapies to treat severe, genetic diseases and currently possesses a sizable, yet mostly early-stage pipeline. Its first approved product, Casgevy, was developed in collaboration with narrow-moat Vertex Pharmaceuticals to treat transfusion-dependent beta-thalassemia and sickle-cell disease. Crispr Therapeutics and Vertex have received regulatory approvals for Casgevy in several geographies, including the European Union, the United Kingdom, and the United States. We think Casgevy’s high selling price and the significant unmet medical need for treating sickle-cell disease and transfusion-dependent beta-thalassemia will help it become a blockbuster drug during our 10-year forecast period. The rest of Crispr Therapeutics’ pipeline is in relatively early stages of development, so we refrain from awarding the company an economic moat. That said, Crispr Therapeutics provides long-term investors with pure-play exposure to gene editing technology.

Read more about Crispr Therapeutics here.

BioMarin Pharmaceutical

• Morningstar Price/Fair Value: 0.64
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Industry: Biotechnology

BioMarin is a global biotechnology company focused on developing and commercializing therapies for rare genetic diseases. Trading 36% below our fair value estimate, BioMarin Pharmaceutical has an economic moat rating of narrow. We think shares of this stock are worth $90 per share.

BioMarin is amassing a portfolio of rare genetic-disease therapies, making historical comparisons with Genzyme (acquired by Sanofi) difficult to avoid. Commercialization and research and development expenses kept BioMarin in the red for years despite multiple approved products, but we’re confident in the durable, profit-generating power of its current portfolio. With a deep in-house pipeline and the ability to supplement growth with strategic acquisitions, BioMarin is in a strong position.

BioMarin specializes in enzyme replacement therapies for ultra-rare diseases, often with only a few thousand patients globally, yet high pricing power and barriers to entry drive annual sales in the hundreds of millions. BioMarin partnered with Genzyme to launch its first drug, Aldurazyme, for mucopolysaccharidosis I, or MPS I. BioMarin’s MPS VI therapy, Naglazyme, continues to grow due to higher (more expensive) dosing as young patients mature; with peak sales expected near $630 million.

In addition, BioMarin treats patients with phenylketonuria, or PKU. While generic versions of Kuvan (mild to moderate PKU) launched in the US in 2020, the more potent drug Palynziq launched in 2018 in the US to serve adult patients with PKU, including those with more severe disease. PKU is generally well-diagnosed thanks to newborn screening programs, and no alternative drug therapies exist.

Voxzogo, launched in late 2021, has shown the ability to restore growth rates in young patients with achondroplasia, the most common form of dwarfism. Additional trials could extend Voxzogo’s use to other growth disorders, and we model total sales around $2 billion at peak.

In December 2025, BioMarin announced plans to acquire Amicus Therapeutics for $4.8 billion, adding two US- and EU-approved rare-disease therapies, Galafold (Fabry disease) and Pombiliti + Opfolda (Pompe disease). We see strong growth potential from leveraging BioMarin’s scale, global footprint, and commercial capabilities. We project Galafold and Pombiliti + Opfolda to each exceed $1 billion in annual sales by the end of our 10-year forecast, representing about 30% of total company revenue in 2034.

Read more about BioMarin Pharmaceutical here.

Jazz Pharmaceuticals

• Morningstar Price/Fair Value: 0.85
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: None
• Industry: Biotechnology

Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and oncology. The stock is trading at a 15% discount to our fair value estimate. We think Jazz Pharmaceuticals is worth $196 per share.

Jazz Pharmaceuticals added its leading drug, Xyrem, to its portfolio in 2005 with the acquisition of Orphan Medical for about $123 million. This was a great price for the then newly approved drug, which became a blockbuster. At that point, Xyrem was the only approved treatment for cataplexy (sudden muscle weakness or paralysis) in narcolepsy; it has since garnered additional approvals for excessive daytime sleepiness in patients with narcolepsy. Its strong efficacy has propelled its success in the difficult-to-treat sleep indication, but generic entry is on the horizon, leaving a cloud of uncertainty for the company. Jazz reached a settlement in 2017 with Hikma Pharmaceuticals to not allow generics on the market until January 2023. While Jazz will retain some economic profit from royalties on generic sales and a shared distribution program, we are seeing the negative impact of generic entry on Xyrem’s sales.

We believe Jazz faces a notable degree of risk in clinical development and commercialization. In addition to generic Xyrem, we anticipate branded competition in narcolepsy will increase. We expect modest growth from Xywav, which was approved by the Food and Drug Administration in July 2020. We anticipate this low-sodium version of Xyrem will help offset Xyrem’s declines as a subset of patients will shift to this newer medication.

Management is focused on diversifying its portfolio, with the new drug approvals of Zepzelca (for metastatic small cell lung cancer), Rylaze (for acute lymphoblastic leukemia), Xywav (for the treatment of cataplexy, EDS, and idiopathic hypersomnia), and Ziihera (for HER2-positive biliary tract cancer). Strong launches and commercialization efforts for these drugs will be crucial for Jazz’s long-term growth.

Acquiring recently launched drugs has been part of Jazz’s portfolio diversification strategy. In May 2021, Jazz acquired GW Pharmaceuticals for the hefty price of $7.2 billion. GW contributed $991 million to Jazz’s overall 2024 revenue, largely driven by its leading product, Epidiolex. This drug is a cannabidiol for the treatment of severe, rare forms of epilepsy.

Read more about Jazz Pharmaceuticals here.

Royalty Pharma

• Morningstar Price/Fair Value: 0.86
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Narrow
• Industry: Biotechnology

Royalty Pharma rounds out our list of best biotech stocks to buy. Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. Royalty Pharma stock is 14% undervalued relative to our fair value estimate of $51 per share.

Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. The company makes lump-sum payments in exchange for future cash flows linked to those products’ sales revenue, which differentiates it from other biotech companies that are exposed to high R&D and/or manufacturing costs. Its uniqueness also lies in the diversity of royalties across different therapeutic areas. This stands in contrast to a typical biotech firm’s focus on developing specialized therapies targeting certain diseases.

Royalties play an important role in the commercialization process of cutting-edge therapies. Royalties are usually created as a form of payment when a large biopharma company takes over research insights from smaller biotech firms or research institutions for further marketing and development through licensing agreements. In this process, royalty recipients often face the issue where multiple small future royalty streams cannot fulfill ongoing large lump-sum R&D funding needs. The mismatch is where Royalty Pharma captures its market opportunity.

The increasing demand for capital across the global biopharma industry has been propelling Royalty Pharma’s growth in recent years. The total dollar value of all royalty transactions in 2022 was 10 times the volume in 2015. Royalty financing shows its advantage as a nondilutive funding method that satisfies instant funding needs despite the conditions of debt and equity markets. As a leading royalty acquirer, we think Royalty Pharma is in a great position to capture market tailwinds.

With the average development cost for a newly approved drug surpassing $2.3 billion in 2024, we find Royalty Pharma’s capability of executing large deals appealing. Royalty Pharma has a dominant market position for transactions sized over $500 million. The company’s extensive experience in structuring flexible deals with installment and milestone payments makes it a preferred choice for many royalty sellers.

Read more about Royalty Pharma here.

How to Find More of the Best Biotech Stocks to Buy

Investors who’d like to extend their search for top biotech stocks can do the following:

• Review Morningstar’s comprehensive list of biotechnology stocks to investigate further.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
• Use the Morningstar Investor screener to build a shortlist of biotech stocks to research and watch.