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3 Hot Biotech Stocks to Buy in June - June 1, - ydigatocop.web.fc2.com

Biotech stocks across the board have had a great year so far, but Cara Therapeutics Inc. CARA , Rigel Pharmaceuticals, Inc. RIGL , and Omeros Corporation NASDAQ: Sure, these companies are developing therapies for conditions you've probably never heard of, but outlooks for their respective drug candidates are plenty exciting.

The fates of small-cap biotechs are always shrouded with enough uncertainty that these three stocks fall outside of my personal risk zone, but more adventurous investors might want to put them in their portfolios. To see why, let's look at potential catalysts that make these three stocks screaming buys right now.

According to the American Society of Addiction Medicine, in about 2 million Americans had a substance abuse disorder involving prescription painkillers.

3 Biotech Stocks I'd Buy Right Now -- The Motley Fool

Attempts to make opioids addiction-resistant have so far been laughable, but one biotech could have an interesting solution in its pipeline. This allows it to act on opioid receptors where pain signals originate instead of where they're interpreted, in the brain.

Results from a safety study prove patients don't "like" the drug nearly as much as a popular opioid painkiller.

Luckily, patients with severe rashes and itching related to kidney disease don't need to "like" CR for it to help them stop feeling itchy. Kidney failure might be more prevalent than you realize. Cara estimates a potential patient population of around 4. Later this year, Cara Therapeutics intends to begin a study that could support a New Drug Application for itching related to kidney disorders.

If the results fall in line with previous observations, an approval seems likely. In the meantime, investors will want to keep their eyes open for results from a late-stage trial to see if CR has a shot in the postoperative setting.

The average biotech stock trades at prices about 5.

That means even modest success in the commercial stage could make this a multibagger. You probably haven't heard of immune thrombocytopenic purpura ITP , but between 60, and , people in the U. False recognition of platelets as foreign invaders to be dealt with by the immune system causes a handful of debilitating symptoms.

At the moment there aren't any therapies specifically approved to treat ITP, but Rigel Pharmaceuticals has a candidate in late-stage development that could be the first.

The company submitted a New Drug Application for Tavalisse, formerly fostamatinib, to the Food and Drug Administration last month. The agency can take up to two months to formally accept the submission for review or reject it.

A single patient response in a placebo group during a trial supporting the application is a noteworthy sticking point. I agree with my Foolish colleague David Liang that the overall application should satisfy regulators, but investors should remain braced for a longer timeline if the FDA asks for more data. Apply the average price-to-sales ratio and this biotech stock has long-term, multibagger potential written all over it.

Rigel and Cara are burning through cash in hopes they'll have a product to sell, but Omeros Corporation is funneling sales of its lead product into the development of a candidate with blockbuster potential. In the company's pipeline, you'll find a rare-disease candidate in late-stage development, called OMS Omeros is running a late-stage aHUS trial right now with OMS and is poised to begin two more late-stage studies for separate indications later this year. If positive results seen earlier are repeated, Omeros could have a second drug with blockbuster potential generating sales.

Cory Renauer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The Motley Fool has a disclosure policy. Cory is a long-term minded analyst focused on the Healthcare Sector. He genuinely enjoys cutting through the complexity to help everyday investors make better decisions. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services.

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