Since the biotech industry was born in 1976 with the founding of Genentech, hundreds of biotech firms have been started by investors hoping to capitalize on the newest scientific research.
It shouldn't be surprising, with the lightning-fast rate of scientific advancement over these last 35 years, opportunities for potential profits have been countless.
The idea behind the biotech industry was for large pharmaceutical companies, like Merck or Johnson & Johnson, to outsource the cutting-edge scientific research to smaller biotech firms that benefit from less bureaucratic tape and greater autonomy. Larger pharmaceutical firms and smaller biotech firms often work together or merge.
The biotech industry remains in a high-growth phase, which actually translates to "recession proof" in some ways. Because pharmaceutical products are bought regardless of economic environment, investors are as optimistic as ever about the industry.
Here we report five biotech firms that have just received great news -- either in the form of an FDA approval or positive clinical trial results. (Click here to access free, interactive tools to analyze these ideas.)
1. Acura Pharmaceuticals
3. Bristol-Myers Squibb
4. Valeant Pharmaceuticals
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Alexander Crawford does not own any of the shares mentioned above.
The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.