2 Biotech Stocks Set to Rebound in 2026

Looking to beat the market over the next five years? Here's one strategy to adopt: Invest in stocks that have not performed well recently but boast attractive prospects.

Two intriguing corporations to consider now are Viking Therapeutics (NASDAQ: VKTX) and BioNTech (NASDAQ: BNTX). These biotech companies are somewhat risky, but after terrible performances in 2025, both could rebound this year and deliver strong returns through 2031. Allow me to explain.

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1. Viking Therapeutics

Viking Therapeutics is developing weight-loss medicines, with its most advanced candidate, VK2735, a GLP-1 medicine, currently in phase 3 studies in a subcutaneous formulation. Although some of the largest drugmakers are working on weight-management drugs, Viking Therapeutics' mid-stage results for VK2735 looked stronger than those of many of its bigger competitors. The company has several other tricks up its sleeves. For instance, it is also working on an oral version of VK2735.

And not content with initial weight loss, Viking Therapeutics is testing different dosage schedules and formulations to see whether its leading product can help patients keep the weight off.

On top of all that, the company is developing a brand-new weight management candidate for which it could start clinical trials this year. We should see some clinical progress from Viking Therapeutics in 2026, though its most important data readout from the phase 3 study of subcutaneous VK2735 probably won't come until next year.

Still, Viking's shares could rise this year as it makes headway elsewhere, and provided it can deliver with solid clinical and regulatory wins through 2028, the stock could provide superior returns in the long run.

2. BioNTech

BioNTech's financial results haven't been great. The company's revenue from its coronavirus vaccine -- the rights of which it shares with Pfizer -- has been inconsistent, at best. However, ongoing clinical progress suggests BioNTech could finally put those things in the rearview mirror. Through 2026, we could see several important data readouts from the company.

Let's consider a few examples. There is BNT113, an investigational cancer medicine for which we should see an interim analysis for an ongoing late-stage clinical trial this year. BNT113 is being investigated as a potential therapy for head and neck cancer, and it has received Fast Track Designation from the U.S. Food and Drug Administration, which helps expedite the development and approval of promising candidates targeting areas with high unmet needs.

There is also Trastuzumab Pamirtecan, an investigational therapy for endometrial cancer in phase 3 studies for which we could also see interim data this year. With plenty of pipeline progress lined up this year, BioNTech's stock could jump and maintain the momentum it has had in recent months. And if it can launch some of these medicines in the next couple of years, its financial results will improve. That's how the stock could deliver superior returns through 2031.

Prosper Junior Bakiny has positions in Viking Therapeutics. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends BioNTech Se and Viking Therapeutics. The Motley Fool has a disclosure policy.