Top 3 Biotech Stocks To Watch In October 2026

Bond giant Pimco now sees a real chance of US 10 year Treasury yields hitting 6%, which pulls money toward safer income and makes investors choosier about where they take risk. That kind of pressure can punish weaker stories and shine a spotlight on stronger balance sheets. This article looks at three high potential US biotechnology stocks with more grounded finances to help you focus your research on sturdier candidates.

The three biotech stocks below are just a starting sample, and the full screen surfaced 81 more companies with equally compelling stories that are not covered here.

If you want to quickly identify and analyze more high potential biotech opportunities with similar financial discipline, head straight to the Biotech Stocks screener.

Eli Lilly (LLY)

Eli Lilly anchors this biotech screen with a large portfolio of diabetes and obesity medicines that rely on advanced biologic research, alongside sizeable oncology and immunology franchises that help spread risk across several major treatment areas.

Eli Lilly generates its entire US$79.7b in revenue from discovering, developing, manufacturing, marketing, and selling prescription therapies, led by cardiometabolic and obesity drugs, and the business has an equity value of about US$1.1 trillion in the market.

For investors seeking biotech exposure with significant scale, Eli Lilly offers a mix of weight management drugs, broad disease coverage, and late stage research that can all influence results at its current size.

"Mounjaro (for type 2 diabetes) and Zepbound (obesity) each grew rapidly in 2024, with analysts projecting Mounjaro sales of $18.4B in 2025 and $22.8B in 2026, and Zepbound increasing from $4.9B (2024) to $12.5B in 2025 (and $18.1B in 2026)."

The key issue ahead is how pressure on this franchise reshapes both pricing power and the durability of that growth story.

That pressure point on pricing and durability is exactly where the full narrative for Eli Lilly cuts deeper, unpacking how Eli Lilly’s pipeline, rivals, and capital choices could reshape the story.

Arrowhead Pharmaceuticals (ARWR)

Arrowhead Pharmaceuticals leans directly into the Biotech Stocks theme through its RNA interference drug pipeline, led by late stage candidates Plozasiran and Zodasiran. The business generates about US$669 million from nanotechnology related work in the United States and carries a market value near US$8.7b.

Arrowhead Pharmaceuticals gives this biotech screen exposure to RNAi therapies that try to switch disease causing genes off at the source. This is the kind of high risk, high potential science many investors look for in this sector.

"Rising healthcare cost-containment pressures, especially in the U.S. and European markets, are expected to create a stricter reimbursement environment for high-priced, novel therapies like Arrowhead's RNAi agents, which could significantly limit commercial pricing power and constrain topline revenue growth, even for first-in-class drugs such as plozasiran."

What happens to Arrowhead’s long term reward potential will hinge on how one unresolved pressure shapes the balance between scientific promise and economic reality.

That unresolved pressure is exactly why the full narrative for Arrowhead Pharmaceuticals digs into where Arrowhead Pharmaceuticals' pricing power could still accelerate value instead of leaving the story stalled.

Trulieve Cannabis (TRLV)

Trulieve Cannabis plugs into the Biotech Stocks theme through its cultivation and processing of plant based medical cannabis, generating about US$1.1b in pharmaceutical related sales in the US, and the stock carries a market value near US$2.1b.

Trulieve Cannabis gives this biotech focused list a different flavor, tying traditional cultivation skills to branded, plant based therapies that look closer to consumer products than classic lab drugs, yet still live and die by regulatory shifts and cash generation.

"Federal reclassification of medical marijuana to Schedule III, along with the ability to register with the DEA and deduct ordinary expenses, is expected to reduce the impact of 280E and could free up more cash to support earnings and operating margins over time."

What that extra financial breathing room really means will depend on how one less visible pressure reshapes pricing power and long term demand.

That quieter force is exactly where the full narrative for Trulieve Cannabis shows how Trulieve Cannabis could turn regulatory relief into accelerating cash flow and a stronger long term earnings profile.

Seeking Fresh Alternatives Before They Fly

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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