Biotech stocks have been on a wild ride in 2021. Thanks to a spate of surprise rejections by the Food and Drug Administration (FDA), an increasingly politicized regulatory landscape for COVID-19 vaccines, and widespread profit-taking in response to the industry's strong 2020, the SPDR S&P Biotech ETF initially lost over 12% of its value during the first six months of 2021.
However, this closely-watched biotech ETF quickly sprang back to life last month in the wake of Pfizer's decision to buy cancer specialist Trillium Therapeutics. This early-stage buyout was widely regarded by investors as a positive sign that merger and acquisition activity within the industry could soon pick up in a big way -- a central theme which ought to provide a much-needed boost for biotech valuations for the remainder of the year.
Which biotech stocks are poised to ride this wave higher in September and beyond? Axsome Therapeutics (AXSM -1.44%) and Curis (CRIS -7.24%) are two small-cap biotech companies which have been absolutely crushed over the past 90 days. Both of these beaten-down biotech stocks, though, could be on the verge of a major growth spurt. Here's a brief over on the potential risks and rewards associated with each name.
