Are you looking for stocks that can deliver big gains in a short amount of time? If so, you may have already noticed these three life science industry stocks have already doubled since the beginning of the year.

The first few months of 2023 have been outstanding for these stocks and there's a chance they could climb even higher before the year's finished. There are always a lot of ins and outs when it comes to developing and selling new treatments. Read on to find out why these stocks jumped and how they could do it again.

Reata Pharmaceuticals

Shares of Reata Pharmaceuticals (RETA) are up 147% this year following a huge spike on Feb. 28. That's when the U.S. Food and Drug Administration (FDA) granted approval to the company's first drug. Skyclarys is the first and only drug approved to treat an ultra-rare neuromuscular disorder called Friedreich's ataxia.

Typically diagnosed as adolescents, patients with Friedreich's ataxia usually require wheelchair assistance in their 20s. Skyclarys is a once-daily capsule that slows the progression of the disorder. During the trial that convinced the FDA to approve the drug, it significantly improved Friedreich's ataxia rating scale scores compared to a placebo.

Wall Street analysts who follow Reata Pharmaceuticals think Skyclaris sales can reach $1.2 billion at its peak. This could stir a deep-pocketed pharmaceutical company to make Reata a juicy buyout offer and drive the stock even higher before the end of the year. 

Before placing your own bet on Reata, you should know that expectations are already so high that the company sports a huge $3.5 billion market cap at the moment. If the initial launch of Skyclaris isn't a rousing success and it fails to attract an offer, this stock could fall hard. 

Aurinia Pharmaceuticals

Aurinia Pharmaceuticals' (AUPH 0.56%) stock is up 128% this year thanks to better-than-expected sales of its lead drug, Lupkynis. This is a treatment for lupus nephritis that the FDA approved in January 2021.

As the first oral treatment for an underserved patient population, annual Lupkynis sales are expected to top out above $1 billion. Unfortunately, when biopharma companies launch their first approved drug, they rarely meet pre-launch expectations. This is a lesson that Aurinia investors learned the hard way when the stock tanked last year in response to Lupkynis sales that reached just $45 million in 2021.

The stock jumped in January because it looks like Lupkynis is finally catching on. In 2022, sales came in at $103.5 million and this could be another year of high growth. For 2023, the company expects Lupkynis sales to land between $120 million and $140 million.

Biopharma industry experts still expect Lupkynis sales to top out above $1 billion but Aurinia's market cap at the moment is just $1.4 billion. Commercial-stage biopharma stock valuations usually hover around mid-single-digit multiples of annual sales. This means investors could see huge gains if Lupkynis meets expectations or modest gains if it only gets halfway there.

Orchestra BioMed Holdings

Orchestra BioMed (OBIO 1.41%) combined with a special purpose acquisition company (SPAC) this January and immediately fell. Its stock price has soared 129% since the beginning of February, and it could climb a lot higher if Medtronic picks up the hypertension device that Orchestra BioMed is putting down.

Last July, Orchestra BioMed announced a strategic collaboration with Medtronic to develop BackBeat Cardiac Neuromodulation Therapy (CNT). This is an experimental device designed to lower blood pressure and it's compatible with standard pacemakers. Among approximately 1.1 million people who have an implanted pacemaker, an estimated 70% also have hypertension.

Medical device development is a super risky venture but Orchestra BioMed's partnership with a leading provider of pacemakers takes a lot of risk off the table. If BackBeat CNT earns approval from regulators, Medtronic will have global rights to commercialize it.

During the Moderato 2 clinical trial, patients treated with BackBeat CNT exhibited significant blood pressure reductions compared to those randomized to receive a placebo. A larger pivotal trial to confirm previous observations is in the works. Another positive result could quickly cause this company's modest $588 million market cap to double again.