Biotechnology companies are intriguing investment vehicles because they are part of a pretty speculative industry that allows investors to grow their investments rapidly — if they pick a company before it releases positive results. But on the flip side, a single negative press release could send a stock tumbling with biotech stocks being so volatile. Overall, it is an industry that average investors should tread through lightly, but for investors looking for dramatic growth potential, the biotech industry is a place to start.

Investors looking for somewhat risky investments for the possibility of tremendous growth should look into these companies listed below because they all have had groundbreaking news recently that has sent their share price skyrocketing and may have more room to grow in the near term.

Invivyd (IVVD)

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Invivyd (NASDAQ:IVVD) is a pharmaceutical manufacturer that offers antibody-based products to prevent and manage illnesses such as COVID-19 and Influenza. It currently has six COVID-19 and one influenza treatment within clinical trials.

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On Nov. 9, Invivyd reported third-quarter earnings for 2023, in which it reported a net loss that shrank by 13% compared to the year before and had a cash position of approximately $265 million for the end of the third quarter. Within the earnings report, IVVD announced that a new Chief Financial Officer was appointed in September. Advancements in multiple treatments were also mentioned.

Inviviyd stock surged by 120% directly following its announcement on Dec. 18 that it received positive top-line results regarding VYD222, a preventive treatment for COVID-19. On Jan. 3, IVVD announced that it submitted an emergency use authorization (EUA) to the U.S. FDA regarding its COVID-19 treatment VYD222.

These positive earnings result from the previous quarter and the large rally at the tail end of 2023 and the beginning of 2024. With the groundbreaking news that Invivyd is seeking EUA for its COVID-19 treatment VYD222, it is one to watch closely. Since if the EUA gets approved by the FDA, which would likely increase its share price.

Ardelyx (ARDX)

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Ardelyx (NASDAQ:ARDX) is an oral medication provider that develops and distributes treatments for irritable bowel syndrome, chronic kidney disease and hyperkalemia.

Over this past year, its stock price has more than tripled due to improved earnings results and sales estimates as of recently. On Oct. 31, Ardelyx reported earnings for the third quarter in which it stated groundbreaking revenue growth that increased by over 11-fold compared to the year before. And it experienced a net loss in Q3 2022 of $23 million, and for Q3 2023, that improved to a net gain of 7 million. The jump in sales was primarily due to increased demand for its irritable bowel syndrome treatment, Ibsrela, its first commercialized product. Also announced within the press release was that Xpozah, which is its medication to treat chronic kidney disease (CKD), was approved by the FDA in October.