The Best Biotech Stocks to Buy in 2026

The biotech industry is on fire right now. Over the past 12 months, the SPDR S&P Biotech ETF has crushed broader equities, gaining 61% while the S&P 500 climbed just 25%.

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There are good reasons to remain bullish on the sector. As medical breakthroughs lead to better therapies for hard-to-treat conditions, innovative biotechs might be handsomely rewarded. Let's consider two drugmakers to buy to capitalize on this: CRISPR Therapeutics (NASDAQ: CRSP) and Vertex Pharmaceuticals (NASDAQ: VRTX). Here's why these are among the best biotech stocks to buy.

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1. CRISPR Therapeutics

CRISPR Therapeutics is a gene editing specialist. It developed Casgevy, a medicine for two rare blood diseases, in collaboration with Vertex Pharmaceuticals. Casgevy doesn't generate much revenue yet, but its sales should ramp up over the next few years. CRISPR Therapeutics also has a deep pipeline of products that could lead to significant clinical and regulatory milestones. Some of the company's most promising medicines include CTX611, an investigational anticoagulant being developed to be administered just twice a year (typically, anticoagulants are taken daily), while lowering the risk of bleeding that competitors pose.

Another promising candidate in CRISPR Therapeutics' portfolio is CTX310, a potential one-time therapy to lower patients' LDL cholesterol, which can lead to cardiovascular issues at high levels. CRISPR Therapeutics expects data readouts from ongoing clinical trials for these candidates in the second half of the year.

One important thing to note about CRISPR Therapeutics' pipeline is that many of its investigational treatments could be breakthroughs if approved. That's one of the key reasons to consider investing in this biotech stock. And although the company's shares could drop if it encounters setbacks, CRISPR Therapeutics' deep pipeline and significant cash on hand -- it had $2.4 billion in cash and equivalents as of March 31, which isn't bad for a company worth about $5 billion -- should allow it to eventually launch brand-new products. CRISPR Therapeutics could deliver excellent returns as Casgevy makes commercial progress, while newer products pass key clinical and regulatory milestones.

2. Vertex Pharmaceuticals

Vertex Pharmaceuticals still has a monopoly in the cystic fibrosis (CF) area, as the only company that markets medicines that target the underlying causes of CF. However, the biotech leader has made significant progress in diversifying its lineup. The launch of Casgevy was just the first step. It also earned approval for Journavx, a therapy for acute pain. Recent developments should help Vertex add even more brand-new products to its portfolio. In March, Vertex Pharmaceuticals announced positive phase 3 results for povetacicept in patients with IgA Nephropathy (IgAN, a kidney disease).

The company has now completed a regulatory application for this medicine in the U.S., and it could earn approval by year-end.

For povetacicept, the IgAN indication may just be the beginning. Vertex Pharmaceuticals plans to pursue various label expansions for the medicine. Beyond this product, the drugmaker has several other candidates at various stages of clinical development. Vertex Pharmaceuticals has lagged broader equities over the past year, partly due to clinical setbacks and worse-than-expected financial results. However, the company's continued dominance in CF and attractive pipeline make the stock a great pick for long-term investors.

Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends SPDR Series Trust-SPDR S&P Biotech ETF. The Motley Fool has a disclosure policy.