Three lesser-known biotech companies—Krystal Biotech, Madrigal Pharmaceuticals, and Exelixis—are emerging as compelling investment opportunities in the healthcare sector, despite the dominance of larger firms like Eli Lilly and Johnson & Johnson. Krystal Biotech has recently gained traction with its FDA-approved gene therapy, Vyjuvek, for Dystrophic Epidermolysis Bullosa, reporting a 34% revenue increase to $389.1 million in 2023. Its ongoing expansion into global markets and a robust pipeline suggest continued growth potential.

Madrigal Pharmaceuticals has also made headlines with its FDA-approved treatment for metabolic dysfunction-associated steatohepatitis (MASH), Rezdiffra, which saw revenues soar by 432% to $958.4 million in 2025. With a significant target population and additional pipeline candidates, Madrigal is well-positioned to capture more market share.

Exelixis, focused on oncology, continues to thrive with its leading drug, Cabometyx. As it develops next-generation therapies and prepares for future competition, Exelixis remains a strong contender in the oncology space. Investors should keep an eye on these stocks for potential growth in the evolving healthcare landscape.

Source: fool.com