Healthcare stocks have emerged as an area of relative strength in 2026, outperforming technology shares as investors seek opportunities beyond the artificial intelligence ( AI ) boom.
Beyond their defensive characteristics, biotechnology companies developing treatments for cancer, diabetes and other diseases offer exposure to potentially significant long-term growth.
While turning a small investment into a substantially larger one within a year would require exceptional returns, some smaller healthcare companies have catalysts that could attract investor interest in 2027.
To this end, Finbold has identified the following two companies worth considering
Recursion Pharmaceuticals (NASDAQ: RXRX)
Recursion Pharmaceuticals (NASDAQ: RXRX ) could offer significant upside in 2027 as its AI-powered drug discovery platform advances through clinical development and attracts pharmaceutical partnerships.
RXRX shares have struggled in 2026, falling more than 15% year-to-date to $3.56 at press time. A $10 investment would need the stock to reach $35.60 to become $100, representing a 900% gain.
RXRX YTD stock price chart. Source: Google Finance
A key catalyst is REC-4881, an investigational treatment for familial adenomatous polyposis (FAP), a rare inherited condition that increases colorectal cancer risk.
Recursion has reported Phase 2 results showing that 87% of patients experienced reduced polyp burden after 12 weeks of treatment, with a median reduction of 47%. Additionally, 85% of evaluable patients remained below baseline polyp burden 12 weeks after stopping treatment.
The company also reported encouraging Phase 1 results for REC-1245, its investigational cancer treatment, including two confirmed partial responses in endometrial cancer, one unconfirmed response in liver cancer and a 91.7% disease control rate at doses of at least 45 mg.
Financially , third-quarter 2026 revenue rose to $18.6 million from $5.2 million a year earlier, while its net loss narrowed to $119 million from $162.3 million.
Recursion ended September with $561.5 million in cash, with an October equity offering adding approximately $187.2 million in net proceeds and extending its expected cash runway into 2029.
Sana Biotechnology (NASDAQ: SANA)
Sana Biotechnology (NASDAQ: SANA) is another speculative healthcare stock advancing engineered cell therapies for difficult-to-treat diseases, including type 1 diabetes and cancer.
SANA shares have also struggled, falling over 40% in 2026 to $2.38 at press time. For a $10 investment to become $100, the stock would need to reach $23.80, representing a 900% gain.
SANA YTD stock price chart. Source: Google Finance
Its lead program, SC451, uses hypoimmune-modified, stem-cell-derived pancreatic islet cells to potentially restore insulin production without long-term immunosuppression. Sana is targeting an investigational new drug application and a Phase 1/2 trial as early as 2026.
Another candidate, SG293, is designed to enable the body to produce CD19-directed CAR T cells to treat conditions such as non-Hodgkin lymphoma. Sana is targeting a Phase 1 study in early 2027, with data from both programs expected during the year.
Its earlier UP421 study also demonstrated transplanted beta-cell survival and function after 14 months without immunosuppression, although these findings do not establish that SC451 will deliver similar results.
At the same time, Sana ended September with $121.7 million in cash and marketable securities, against $103.4 million in operating cash burn during the first nine months of 2026. Its reported third-quarter net income of $20.4 million included a $63.4 million non-cash gain.
Its underlying operations remain loss-making, and a regulatory filing raised substantial doubt about its ability to continue as a going concern, increasing the risk of further financing and shareholder dilution.
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