Biotech stocks are considered extremely high-risk, high-reward investments. Many biotech companies are developing one or more therapies or technologies that, if effective, could improve treatments for common diseases and potentially be worth billions of dollars globally.
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At the same time, these therapies can fail at any step of the development process. Biotech data updates on pipeline drugs and approval decisions by the U.S. Food and Drug Administration, or FDA, and other regulators are among the most volatile catalysts in the entire stock market. Here are seven of the best biotech stocks to buy in 2026, according to Morgan Stanley analysts:
| Stock | Implied upside* |
| Argenx SE (ticker: ARGX) | 39.9% |
| BeOne Medicines Ltd. (ONC) | 41.2% |
| Iqvia Holdings Inc. (IQV) | 28.4% |
| BioNTech SE (BNTX) | 37.4% |
| Insmed Inc. (INSM) | 99.9% |
| Ascendis Pharma AS (ASND) | 16.9% |
| Ionis Pharmaceuticals Inc. (IONS) | 72.4% |
*From June 1 close.
Argenx SE (ARGX)
Argenx is a biotech company developing therapies for autoimmune disease and cancer. The company’s approved drugs are Vyvgart for treating generalized myasthenia gravis (gMG) and chronic inflammatory demyelinating polyneuropathy, and Vyvgart Hytrulo, a subcutaneous formulation for treating the same two conditions. In May 2026, the FDA approved label expansions for Vyvgart and Vyvgart Hytrulo to include all adult patients with gMG, not just those with specific antibody markers. Analyst Sean Laaman says the market doesn’t fully appreciate Argenx’s pipeline optionality and label expansion potential. Morgan Stanley has an “overweight” rating and $1,170 price target for ARGX stock, which closed at $836.09 on June 1.
BeOne Medicines Ltd. (ONC)
BeOne Medicines, formerly known as BeiGene, is a multinational oncology company that has several cancer therapies approved around the world. In the U.S., BeOne’s zanubrutinib (Brukinsa) is FDA-approved for treating B-cell malignancies, including chronic lymphocytic leukemia, small lymphocytic lymphoma, Waldenström’s macroglobulinemia, marginal zone lymphoma, follicular lymphoma and mantle cell lymphoma (MCL). In May 2026, the FDA approved BeOne’s sonrotoclax (Beqalzi) for treating adults with relapsed or refractory MCL. Laaman says Brukinsa’s European growth potential is not yet priced into BeOne’s stock. Morgan Stanley has an “overweight” rating and $395 price target for ONC stock, which closed at $279.68 on June 1.
Iqvia Holdings Inc. (IQV)
Iqvia is a clinical research company that provides healthcare data solutions. The company acts as a contract research organization (CRO), helping biotech, pharmaceutical and medical device companies design clinical trials, recruit patients and navigate the regulatory approval process. Analyst Kallum Titchmarsh says investor concerns that artificial intelligence technology could disrupt Iqvia’s market have weighed on its stock price. Iqvia’s management has said AI could instead be a tailwind for healthcare data solutions sales, and Titchmarsh says the CRO demand environment appears healthy. Morgan Stanley has an “overweight” rating and $240 price target for IQV stock, which closed at $186.82 on June 1.
BioNTech SE (BNTX)
BioNTech is a Germany-based biotechnology company that focuses on developing cancer therapeutics and vaccines for infectious diseases. BioNTech may be best known as Pfizer’s partner in developing the Comirnaty COVID-19 vaccine. In 2026, BioNTech has successfully advanced mRNA-based cancer vaccines targeting melanoma, non-small cell lung cancer and pancreatic cancer to late-stage clinical trials. Analyst Terence Flynn says Comirnaty’s sales outlook is uncertain, but the vaccine provided BioNTech with sufficient capital to fund its broad clinical development program. Flynn is particularly bullish on cancer immunotherapy BNT327. Morgan Stanley has an “overweight” rating and $126 price target for BNTX stock, which closed at $91.70 on June 1.
Insmed Inc. (INSM)
Insmed is a commercial-stage biopharmaceutical company that specializes in rare disease treatment. The company’s commercially approved drugs are Arikayce for treating refractory Mycobacterium avium complex lung (MAC) disease and Brinsupri for treating neutrophilic inflammation in patients with non-cystic fibrosis bronchiectasis. Insmed is also conducting advanced clinical trials to seek an expansion of Arikayce’s label to include newly diagnosed or recurrent MAC lung disease patients. Analyst Maxwell Skor says Brinsupri’s prescription depth is improving and physicians’ confidence in the drug will continue to rise. Morgan Stanley has an “overweight” rating and $212 price target for INSM stock, which closed at $106.03 on June 1.
Ascendis Pharma AS (ASND)
Ascendis Pharma is a Denmark-based biopharmaceutical company focused on using its proprietary TransCon technology to produce long-acting formulations of currently available drugs. The company’s TransCon GH (Skytrofa) is approved for treating growth hormone deficiency, its TransCon PTH (Yorvipath) is approved for treating hypoparathyroidism, and its navepegritide (Yuviwel) is approved for patients 2 years old and over with achondroplasia with open epiphyses. Analyst Maxwell Skor says Yorvipath’s commercial launch in April 2026 is off to an impressive start, including more than 60 enrollments as of May 1. Morgan Stanley has an “overweight” rating and $256 price target for ASND stock, which closed at $218.82 on June 1.
Ionis Pharmaceuticals Inc. (IONS)
Ionis Pharmaceuticals is a leading biotechnology company developing unique antisense oligonucleotide therapeutics. Ionis developed spinal muscular atrophy drug Spinraza, which is marketed by partner Biogen. The company’s other major commercial drugs include Tryngolza for treating familial chylomicronemia syndrome and Wainua for treating hereditary transthyretin-mediated amyloidosis polyneuropathy in adults. Tryngolza is wholly owned by Ionis, and Wainua is co-commercialized with partner AstraZeneca. Analyst Michael Ulz says FDA expansion of Tryngolza’s label to include severe hypertriglyceridemia in 2026 could be a major growth driver for Ionis. Morgan Stanley has an “overweight” rating and $130 price target for IONS stock, which closed at $75.38 on June 1.
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7 Best Biotech Stocks to Buy for 2026 originally appeared on usnews.com
Update 06/02/26: This story was previously published at an earlier date and has been updated with new information.
