2 Healthcare Stocks to Buy Before They Get Bought Out

Abivax (NASDAQ: ABVX) and Nektar Therapeutics (NASDAQ: NKTR) aren't well-known companies, and they don't have track records of profitability yet. That's natural, as both are clinical-stage biotechs -- they don't have any approved drugs on the market yet. However, both are developing novel therapies with blockbuster potential, and both could be worthwhile stocks to own.

Abivax is down by around 10% this year, while Nektar is up by about 77%. Here are three reasons to consider buying each stock.

Abivax

1. A potential blockbuster in obefazimod

French biotech Abivax is developing therapies for chronic inflammatory diseases. Its lead candidate is obefazimod, which is being tested to treat ulcerative colitis, Crohn's disease, and other conditions.

The oral therapy is in a phase 3 trial to treat moderately to severely active ulcerative colitis. The company expects to publish top-line data from that trial in the second quarter; if the drug continues to perform as hoped, Abivax would be on its way to getting its first therapy approved by regulators, and one that could eventually be useful in multiple indications. The drug is also in a phase 2b trial for Crohn's disease, with top-line results expected in the fourth quarter.

Abivax could easily become a blockbuster. According to one study, the ulcerative colitis market alone will be worth $8.7 billion in 2026 but is forecast to grow to $14.3 billion by 2035.

Image source: Getty Images.

2. Possible buyout bids

Though its shares are down so far in 2026, they're up by more than 1,900% over the past year. That surge began when it reported excellent clinical trial results for obefazimod last summer, and got added momentum from rumors that pharma giant Eli Lilly was interested in purchasing Abivax. More recently, there has been talk that AstraZeneca is also considering a bid. Abivax has denied the AstraZeneca rumors, but if it does get purchased by a larger company, the deal would certainly be at a premium to the current share price.

3. A decent war chest

At the end of 2025's third quarter, Abivax reported it had 589.7 million euros (roughly $697 million) in cash and cash equivalents, enough to fund operations into the fourth quarter of 2027. The company reports fourth-quarter earnings on March 23.

Nektar Therapeutics

1. A potential blockbuster therapy in rezpegaldesleukin

Nektar Therapeutics also has no approved drugs in its own portfolio yet, though its technology has helped larger partners bring a number of therapies to market. Its lead candidate, rezpegaldesleukin, fared well in its phase 2b trial to treat moderate-to-severe atopic dermatitis (eczema). The trial's 36-week data showed that more than 80% of patients maintained at least 75% improvement in skin clearance. The drug appeared to be effective even with just quarterly dosing, which would give it an edge over eczema market leaders such as Dupixent, which are dosed with biweekly or monthly injections.

Like Dupixent, rezpegaldesleukin is seen as a potential "pipeline-in-a-drug"; it's also being tested to treat alopecia areata, type 1 diabetes, and multiple sclerosis.

2. An improved cash position

Thanks to a $460 million capital raise earlier this year, the company has more than $700 million in liquidity, enough to fund its operations into 2027. Several analysts have recently upgraded the stock or raised their price targets on it, with consensus estimates ranging from $123 to $130, suggesting significant upside from current levels near $74.

3. Another potential buyout target

Nektar has partnered in the past with Eli Lilly, and it would make a natural acquisition target for many larger pharmaceutical companies. Potential suitors include Sanofi, which, along with Regeneron Pharmaceuticals, owns Dupixent. It could potentially neutralize a competing therapy by buying Nektar. AbbVie, known for its focus on immunology and its aggressive mergers-and-acquisitions strategy, could see rezpegaldesleukin as a good fit for its portfolio. And Amgen has been expanding its inflammation portfolio, with moves including its $27.8 billion purchase of Horizon Therapeutics in 2023.

James Halley has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie, Amgen, AstraZeneca Plc, and Regeneron Pharmaceuticals. The Motley Fool has a disclosure policy.