For many biotech stocks, price and performance hinges on the success of a drug in testing. This means most biotech companies rely on one market opportunity to succeed financially. Testing usually takes several years, with many different criteria to meet before applying for review by regulators.

Even after successful tests, the survival of these stocks relies on approval by the U.S. Food and Drug Administration (FDA). Still, many companies continue to innovate to meet stringent checkpoints to put the next lifesaving drug on the market.

While biotech stocks reported lackluster performance in 2023, news of innovations and FDA decisions keeps stock potential high. These innovations provide critical insight into the future performance of a company’s products and stock prices. For most biotech firms awaiting trial results, the potential is even higher for investors.

Here are three biotech stocks with catalysts to propel their stock prices.

Sarepta Therapeutics (SRPT)

Unlike other competing biotech stocks, Sarepta Therapeutics’ (NASDAQ:SRPT) portfolio of drugs focuses almost exclusively on rare, genetic muscular diseases. Sarepta specializes in treating Duchenne muscular dystrophy and Limb-Girdle muscular dystrophy. This means Sarepta’s research aims to help patients with chronic disorders diagnosed during early childhood.

While Sarepta’s therapies for genetic disorders face many regulatory hurdles, they also present a unique market opportunity with minimal competition. One of Sarepta’s flagship drugs for Duchenne muscular dystrophy, Elevidys, is pending approval for expansion from the FDA. With this expansion, Elevidys would become accessible to adults rather than its previous limit of children aged four to five.

Due to a lack of other treatment options, along with positive feedback from regulators, an expansion is likely by mid-2024. A potential expansion and extensive research on rare muscular diseases currently make Sarepta Therapeutics a strong buy option for 2024.

Atossa Therapeutics (ATOS)

Most biotechnology companies rush to develop drugs to treat diseases, but Atossa Therapeutics’ (NASDAQ:ATOS) offerings focus on disease prevention.

Currently, one of Atossa’s most promising drugs for breast cancer prevention, Karisma-Endoxifen, is undergoing its second phase of trials. This drug provides a unique method of cancer prevention by decreasing breast tissue density, thereby decreasing the likelihood of cancer.

With results from these trials slated to arrive in late 2024, Atossa’s stock potential depends on good news. Another detail to consider about Atossa is its company-wide focus on breast cancer. When a biopharma firm focuses all of its resources on one disease, the stock trends toward stability.

Thanks to this flat trading trend and genuine potential for success in trials, Atossa has become a moderate buy. Atossa’s low stock price and large potential customer base also make it one of the biotech stocks to keep on your radar.

United Therapeutics (UTHR)

Among the biotech stocks with catalysts in the works, United Therapeutics’ (NASDAQ:UTHR) merger with Miromatrix may provide a solution to the transplant organ shortage. This merger’s significance lies in the perfect connection between the companies’ technologies.

Miromatrix specialized in methods for transforming pig kidneys into viable human kidneys ready for transplant. It achieves this by removing all of the pig cells from the kidney and replacing them with human cells. Next, United Therapeutics’ DNA engineering alters the pig kidney DNA to improve the organ’s function in the recipient.

This merger of technologies potentially eliminates both the difficulty in sourcing organs for transplants and improves surgical outcomes. United Therapeutics intends to continue experimenting this year with a target to launch clinical trials by 2025.

If the coming experiments provide successful long-term results, the company’s stock could see a significant increase as trials near.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.