Healthcare stocks as a group have not performed on par with broader equities this year. However, that doesn't mean investors should avoid the sector altogether. Many healthcare companies appear to be attractive bets for those willing to stay the course for the next five years (and even beyond that).
Let's consider these excellent candidates: CRISPR Therapeutics (NASDAQ: CRSP) and Vertex Pharmaceuticals (NASDAQ: VRTX), two innovative drugmakers. Here's why they are both buys heading into 2026.
1. CRISPR Therapeutics
CRISPR Therapeutics, a gene-editing specialist, should have several catalysts next year that could jolt its stock price. First, the biotech could make commercial and clinical progress with Casgevy, a medicine for sickle cell disease and beta-thalassemia developed in collaboration with Vertex. Casgevy has not generated significant revenue yet due to its complex administrative process.
However, CRISPR expects significant growth for the therapy next year because it has spent the last two years ramping up third-party coverage and establishing a network of authorized treatment centers where Casgevy needs to be administered. And the two partners are conducting late-stage studies for Casgevy in patients ages 5 to 11 (it is currently approved for those 12 or older).
A label expansion would boost Casgevy's addressable market.
Beyond this product, CRISPR should make significant progress in its pipeline elsewhere. Let's consider two promising candidates. First, there is SRSD107, a potential anticoagulant that the company is developing in collaboration with Sirius Therapeutics, a privately held biotech company. There are plenty of anticoagulants on the market, but they come with severe limitations, including heavy bleeding as a side effect, a frequent dosing schedule, and others.
CRISPR is looking to address these drawbacks with SRSD107. The medicine has performed well in phase 1 studies and has maintained its efficacy for up to six months, demonstrating potential for less frequent (twice a year) dosing. It is currently in phase 2 studies. The company will likely update investors on the medicine's progress throughout next year.
Second, it is also developing CTX112, which could target several cancers as well as autoimmune disorders. Encouraging progress with this program, which CRISPR Therapeutics could share by year's end and throughout 2026, could also help push the stock higher. The company has several other candidates in its pipeline and could have a much deeper lineup of approved treatments within five years.