2 Biotech Stocks That Could Soar This Year

While it's difficult to predict how the market -- or individual companies -- will perform over the course of 12 months, there can be signs that allow us to make educated guesses. Take, for instance, CRISPR Therapeutics (NASDAQ: CRSP) and Summit Therapeutics (NASDAQ: SMMT). These are two companies that belong to the volatile biotech industry, and both have catalysts on the horizon that could lead to strong performances in 2026.

Let's look deeper to figure out whether CRISPR Therapeutics and Summit Therapeutics are worth investing in this year.

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1. CRISPR Therapeutics

CRISPR Therapeutics, a gene-editing specialist, performed well last year. And the biotech could keep that momentum going in 2026, provided it can make progress with some of its leading pipeline candidates. The most important include CTX310, CTX320, and SRSD107.

Let's briefly dig deeper into each one. First, CTX310 is being developed to help lower LDL cholesterol and triglycerides (TGs). There are more than 40 million patients in the U.S. who have elevated levels of at least one, and both are linked to cardiovascular events like heart attacks or stroke. CTX310, unlike existing therapies, could lower LDL or TGs with a single course of treatment.

CTX320 has a similar goal. It's a one-time treatment designed to help patients lower lipoprotein(a) levels, which can also cause heart attacks or strokes.

Next, SRSD107 is an investigational blood thinner. There are plenty of other options here, but they sometimes cause severe side effects such as heavy bleeding, or they need to be taken daily -- and sometimes indefinitely. CRISPR Therapeutics' candidate could be a long-acting option with fewer side effects.

All three candidates are still in the early stages of development, and each has shown promising signs of efficacy.

CRISPR expects that its only approved product, Casgevy, which treats two rare blood disorders, will make strong commercial headway this year. Between that and the potential clinical progress, the stock could move in the right direction.

Does that mean the shares are worth buying? On the one hand, the company is developing breakthrough therapies across several areas. CRISPR's gene-editing platform is unquestionably innovative. However, there are significant risks here.

For one, gene-editing medicines face commercial challenges due to their complexity in administration and high cost, sometimes exceeding $1 million for a single treatment course. It's not easy to get third-party payers on board, and without them, almost no patient could pay out of pocket.

That's in addition to the usual risks that smaller biotechs face. Clinical setbacks could sink the stock price. CRISPR Therapeutics, in my view, is a good option for risk-tolerant investors. Even for them, it's best to start by initiating a small position in the stock.

2. Summit Therapeutics

Summit Therapeutics has generated plenty of buzz in the biotech industry over the past two years. That's because the company's lead candidate, ivonescimab, which it licensed from China-based Akeso Biopharma, looks incredibly promising.

Ivonescimab has shown hints that it may be able to unseat Keytruda, the world's best-selling cancer drug, in some of its most important markets, including the treatment of patients with non-small cell lung cancer (NSCLC). The treatment isn't approved in the U.S. yet, but Summit Therapeutics could make significant headway toward that goal this year.

The biotech is running several phase 3 clinical trials, including one in squamous NSCLC for which we can expect data later this year. Positive results could jolt the stock price and send ivonescimab on the fast track toward U.S. approval, where it will have a huge commercial opportunity. Lung cancer is the leading cause of cancer death, and the overwhelming majority of cases are of the NSCLC variety.

Ivonescimab's claim to fame is that it performed better than Keytruda in a late-stage study in cancer patients with NSCLC and PD-L1 protein overexpression, although the study was conducted in China. Still, ivonescimab looks likely to be the next big thing in oncology treatments, and progress on this front would be a big deal for Summit this year.

My view is that ivonescimab's extensive data from clinical studies in China -- combined with its approval in that country -- speaks volumes. This may not support approval in the U.S., but it provides valuable insights into the medicine's safety and efficacy.

And given the huge addressable market for treating lung cancer and several other forms of the disease, ivonescimab has excellent prospects. That's why I think Summit Therapeutics is worth serious consideration.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CRISPR Therapeutics and Summit Therapeutics. The Motley Fool has a disclosure policy.