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Biotechnology companies are often a point of high risk and high reward for many traders since many of these companies success can greatly change depending on the news surrounding a single drug. While the risks of passing FDA approval may always be great, the rewards of a passing drug often help to significantly impact the stock value related to a company. Five potential biotech stock companies in particular have the unique opportunity of doubling in value when FDA approval or support places their products in the limelight.

MannKind Corp. (MNKD) - MannKind once represented a stock which was being traded around $22 per share but the results of economic decline, failed drug trials and a lack of product distribution have severely impacted this corporation. While this stock, currently being traded at around $3 per share, would often be avoided by many investors, there is an opportunity on the horizon which could be highly lucrative. Since early January the stock has been on a slow incline from its lowest $2.40 price as a result of a new drug the company could be introducing following FDA approval. Afrezza represents a next generation inhaler delivering an ultra rapid-acting insulin for adult diabetics who have type 1 or type 2 diabetes to control hyperglycemia. While this drug has failed twice seeking FDA approval, latest trials and the introduction of a new inhaler are looking positive following successful trials. If trials are successful I estimate of the stock around $6.90, more than doubling its current value. The company just filed to sell $50 million in warrants and stock, which it will likely need for ongoing operations.

Cell Therapeutics, Inc. (CTIC) - Recent news of Cell Therapeutics pulling the drug application to the FDA for the new drug pixantrone has significantly impacted the stock. The drug is intended to help in the treatment of non-Hodgkin's lymphoma and was pulled as a result of needing additional time before a review could be done by a FDA committee. The result of this withdrawal sent the stock dropping to a low $1 per share, which does not properly represent the company's value. While pulling a drug for further preparation may be interpreted as a negative element by many, I view it as a wise decision of preparation rather than facing denial and the requirement for new testing on the product. Pixantrone is still expected to be introduced in 2012 to the FDA committee so I believe you can expect this stock to not only rebound from the recent poor news but to further increase in value with the approval of the drug.

Exelixis, Inc. (EXEL) - Exelixis has recently fallen on some difficult times as a result of bad timing and slow FDA responses. In 2010 the stock of the company slowly declined trading between $12.82 and $4.09 per share with a 40% drop in stock value in early November of 2011. This drop was a result of not gaining a binding agreement with the FDA to sign off on the study for the experimental prostate cancer drug Cabozantinib. While the study still progressed without the endorsement of the FDA, the inability to capture this agreement resulted in a weakening of investor support since chances of approval were directly impacted from this loss. The company's stock is beginning to increase in value once again as trial evidence displays very positive results to support the distribution of this product. I would recommend early investments into this stock as Cabozantinib comes closer to distribution the odds of this stock doubling in value are high.

Enzon Pharmaceuticals Inc. (ENZN) - In 2011 Enzon represented a fairly stable biotechnology stock for an investor to trade into, trading between $9 to $12 per share and closing the year closer to the higher end. This growth has been a promising sign of progress since the company has no products which are close to being released to the public. Since January of 2012 the stock has declined in value to as low as $6 per share, currently found just above that low cost. While no products may be ready for release the news coming out of trials proves to be very fortunate for Enzon. The company currently has seven therapies which are in phase l trials and two which are in phase ll trials. When you combine the success of these trials with the companies plan to reduce their workforce by 48% in order to boost revenues and reduce operating cost by the second quarter of 2012 the company is set for a strong future. I would recommend investing in this company while the stock is undervalued since positive trial reporting will likely double this stocks value so it is closer to its target price of around $13.

Seattle Genetic Inc. (SGEN) - One of the best examples of how positive news can impact the success of a company's stock can be seen with Seattle Genetic. The company's leading Hodgkin's lymphoma drug Adcetris just released positive news related to trial results in phase two of testing where 65% of patients had positive results from the trials. This has already impacted the stock as it increased to around $19 which is close to a 6% jump. While there are normally three stages of testing before FDA approval, the continuously positive results already have Bloomberg analysts predicting sales around $275 million in 2014. I would invest in this stock soon as continued positive news will likely further boost the value of this stock until Adcetris is finally released to the market.

Source: 5 Biotech Stocks That Could Double