Cytokinetics, Inc. (CYTK), Exelixis, Inc. (EXEL): Three Small Cap Biotech Stocks with Great Potential

Cometriq would be largely welcomed by the consumers who are suffering from MTC. The company is currently developing a research program revolving around Cometriq in which it is testing different compounds for the treatment of other forms of cancer. It has 10 other compounds in phase II and III clinical trials. The company has quite an optimistic future ahead in the cancer treatment drug segment.

Similarly, InterMune Inc (NASDAQ:ITMN) is also a small cap company developing drugs related to pulmonology and orphan fibrotic diseases. Its premier drug, Esbriet, is related to the therapy of pulmonology i.e. treatment of lung conditions. It has been approved by European Union and Canada and as of the first quarter of the year, the drug has been launched into 15 different countries. In the U.S. the company is conducting Phase III trials to get an approval for marketing its product.

The development for the treatment of orphan fibrotic disease is still under the drug discovery and preclinical stage. Now the research and development for the program can be easily be supported by the revenues generated by Esbriet, due to its presence in the European and Canadian markets. The company would get a major uplift once Esbriet gets approved in the U.S.

Final takeaway

To tell you the truth, the risk associated with biotech companies is so high that it is pretty difficult to trust a small cap company with your investment. If the potential of growth is there in a company, then we can expect impressive returns on investment. All the companies that I have discussed above have a positive future outlook and the investors can trust them for hefty returns in the future.

usman iftikhar has no position in any stocks mentioned. The Motley Fool recommends Exelixis. The Motley Fool owns shares of Exelixis. usman is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Small Cap Biotech Stocks with Great Potential originally appeared on Fool.com is written by usman iftikhar.

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