4 Healthcare Stocks to Buy Now

Healthcare biotech stocks, previously undervalued due to rising interest rates, are presenting opportunities as several companies approach critical milestones. CRISPR Therapeutics and Vertex Pharmaceuticals are demonstrating commercial momentum with their gene-editing therapy Casgevy, reporting $30 million in Q2 2025 sales and expanding patient access. Intellia Therapeutics is advancing two CRISPR programs towards key readouts, including a Phase 3 for hereditary angioedema in H1 2026, with potential to deliver the first in-vivo CRISPR therapy. Recursion Pharmaceuticals, leveraging an AI-driven drug discovery platform, is supported by major pharma partnerships and anticipates late-2025 trial results that could validate its approach. Meanwhile, Viking Therapeutics' injectable obesity treatment shows strong efficacy, and while its oral formulation encountered dosing-related side effects, the underlying compound remains promising for a significant market.

Analysis

The healthcare biotech sector, previously challenged by rising interest rates since 2022, is now presenting significant investment opportunities as several innovators approach critical development milestones. Despite a general market sentiment of 'strongly positive' (0.75) for the sector, many promising companies remain undervalued compared to high-multiple AI names, creating a potential valuation gap for astute investors. This environment highlights a shift towards fundamental progress over speculative growth.

Commercial momentum is building in gene-editing, with CRISPR Therapeutics (CRSP) and Vertex Pharmaceuticals (VRTX) reporting $30 million in Q2 2025 sales for Casgevy, indicating strong market traction. With 75 hospitals cleared and 115 patients initiated by mid-2025, sales are projected to grow through 2026, benefiting CRSP through its 40% profit share. Intellia Therapeutics (NTLA) is also nearing pivotal readouts, with Phase 3 results for hereditary angioedema expected in H1 2026, potentially positioning it for the first single-dose, in vivo CRISPR therapy approval.

Recursion Pharmaceuticals (RXRX) leverages an AI-driven drug discovery platform, validated by $19.2 million in collaboration revenue and partnerships with major pharmaceutical companies. Key clinical trial updates in late 2025 could significantly re-rate its programs. Meanwhile, Viking Therapeutics (VKTX) demonstrates strong efficacy with its injectable VK2735, achieving 14.7% average weight loss in mid-stage obesity trials, despite a temporary stock decline due to manageable dose-escalation related side effects in its oral formulation, maintaining its competitive stance in the projected $100 billion obesity market.

Key Decisions for Investors

• Monitor the commercial ramp-up of Casgevy by CRSP and VRTX, as well as the upcoming H1 2026 Phase 3 results for NTLA's hereditary angioedema program, which could be a significant catalyst for the in-vivo CRISPR space.
• Evaluate the late 2025 clinical trial readouts from Recursion Pharmaceuticals (RXRX) for validation of its AI drug discovery platform and the potential for re-rating its pipeline assets.
• Assess Viking Therapeutics' (VKTX) progress with its injectable obesity treatment and any refined strategies for its oral formulation, given the substantial market opportunity and the identified cause of prior setbacks.
• Consider re-evaluating undervalued biotech companies with strong pipelines and near-term catalysts, as the market may begin to shift focus from speculative AI valuations back to fundamental healthcare innovation.