Where can you find the next monster stocks? Check out the biotech space. It’s not easy, but investors can sometimes find highly promising biotech stocks that are only in their early innings.

Three Motley Fool contributors think they’ve identified monster stocks in the making. Here’s why they picked CRISPR Therapeutics (CRSP 18.18%), Summit Therapeutics (SMMT -5.21%), and Viking Therapeutics (VKTX -0.23%).

A promising company in its early growth stage

David Jagielski (CRISPR Therapeutics): Biotech company CRISPR Therapeutics has a market cap of around $5 billion, but it has the potential to be much more valuable in the long run. The gene editing market is still fairly small, but it has a lot of room to grow. Analysts from Grand View Research project that it will expand at a compound annual growth rate of more than 16% between now and 2030, when it will be worth $25 billion. As a leading company in the space, CRISPR Therapeutics is well positioned to benefit from future growth in this area of healthcare.

The company, and its key development partner, Vertex Pharmaceuticals (NASDAQ: VRTX), already have an approved gene therapy treatment in Casgevy, which regulators have approved for both sickle cell disease and transfusion-dependent beta-thalassemia. The companies will share in the profits on the treatment (CRISPR will take 40%). Casgevy is still in its early growth stages. CRISPR is also working on developing treatments for type 1 diabetes and cardiovascular disease. While CRISPR remains unprofitable today, its future does look bright.

It’s a long road ahead for CRISPR Therapeutics, but with an encouraging pipeline and a lot of growth potential, this could be a monster healthcare stock in the making. The business is well funded with its cash and marketable securities as of the end of March totaling nearly $1.9 billion, putting it in an excellent position to continue investing in its research and development efforts.

CRISPR can make for an excellent investment, but it’s also one you’ll need to be patient with.

Still plenty of upside left for this stock

Prosper Junior Bakiny (Summit Therapeutics): Few biotech companies have performed better than Summit Therapeutics over the past three years. The company’s shares have soared by more than 2,000%, making early investors who held on significantly wealthier in the process. Here’s the good news for those who are still considering the stock: There could be a massive upside left for Summit Therapeutics. Though the biotech generates no revenue and is unprofitable, it has one of the more promising pipeline products in the industry.

Summit Therapeutics’ leading candidate is a cancer medicine called ivonescimab, which it licensed out from Akeso Biopharma (OTC: AKES.F), a China-based drug developer.

The medicine has been extensively tested in China, where it has already received approval in certain indications. One of ivonescimab’s most promising markets is non-small cell lung cancer (NSCLC). In a phase 3 study in China, it went head-to-head against the market leader and the world’s best-selling drug: Merck‘s (NYSE: MRK) Keytruda. Ivonescimab emerged victorious, leading to a greater decrease in the risk of recurrence or death among NSCLC patients with a PD-L1 protein overexpression.

Summit Therapeutics is conducting clinical studies to support approval in the U.S. and other regions. Furthermore, the biotech is likely to seek a series of approvals and label expansions over the years, based on the number of clinical trials and indications Akeso is targeting in China. Ivonescimab should easily become a blockbuster and generate strong sales for years. That’s why it’s not too late to invest in Summit Therapeutics. If ivonescimab achieves its full potential, Summit could deliver market-beating returns in the next five to 10 years and establish itself as a prominent player in the biotech industry.

Targeting two monster markets

Keith Speights (Viking Therapeutics): The big story for Viking Therapeutics is its experimental obesity drug VK2735. The company recently advanced a subcutaneous formulation of this candidate into late-stage clinical testing after announcing highly encouraging results from a phase 2 study last year.

Viking is also evaluating an oral version of VK2735 in a separate phase 2 clinical trial, and it expects to report results from that study later in 2025. In addition, the drugmaker plans to initiate a clinical study for a monthly maintenance version of subcutaneous VK2735 in the coming months.

Morgan Stanley Research projects that the global obesity drug market could reach $150 billion by 2035. Viking could be in a great position to claim a nice chunk of that market if VK2735 fulfills its potential.

Obesity isn’t the only big market that the company is targeting, though. In 2023, Viking reported positive results from a phase 2 study of VK2809 in treating metabolic-associated steatohepatitis (MASH), a chronic liver disease also known as nonalcoholic steatohepatitis (NASH). The company is seeking a partner to advance VK2809 into late-stage testing, so it can dedicate its financial resources exclusively to VK2735 for now. Grand View Research predicts the MASH/NASH market could hit $33.8 billion by 2030, so that’s a nice opportunity.

A clinical trial flop for VK2735 and/or a failure to find a partner for VK2809 could prevent Viking from becoming a monster stock. However, I think the company’s chances look pretty good. I also wouldn’t be surprised if a larger drugmaker swoops in to acquire Viking.