Nanobiotix (NBTX +4.54%) is a French biotechnology stock, and one that has soared 660% in 2025 as of Nov. 18. That's enough to draw investor attention, and to have many wondering if such torrid growth could continue. Well, it could -- because the company has some deep pockets behind it. But it might not. Let's take a closer look.
In its own words: "Nanobiotix is a late-stage clinical biotechnology company pioneering the discovery, development, manufacture, and commercialization of disruptive, physics-based nanotherapeutics. We aim to create products that will transform health outcomes for millions of people with cancer and other challenging diseases."
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That certainly sounds positive and promising. But consider these factors before you devote any dollars to the stock:
- Like many biotechnology companies, it's developing drugs more than actually selling them. It raked in negligible revenue until 2023, when it took in $30 million, and its current run rate is a bit below that.
- Its market capitalization of $1 billion makes it a small-cap stock, and those can be more volatile than larger ones.
On the other hand:
- It needs cash to continue its work, and it recently secured up to $71 million via a royalty-based agreement with investment firm Healthcare Royalty Partners (now controlled by the private equity company KKR). What's especially nice about this deal is that it's not dilutive to existing shareholders. Had Nanobiotix simply issued more shares, that would have diluted the value of existing shares.
- It has a promising cancer-fighting drug in development, and has a licensing deal with Johnson & Johnson for it. It's common for biotech companies to partner with deep-pocketed big pharma companies in order to get drugs to market, and this shows that J&J is a believer in Nanobiotix.
NASDAQ: NBTX
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So -- will its growth continue? It might, but much depends on how well it uses its cash and how effectively it secures more cash when needed. I wouldn't park much of my money in it, but you might consider investing a small sum -- especially if you're savvy about biotechnology and have studied the company.
