When it comes to possibilities of outsized rewards, few sectors can beat out biotech stocks with blockbuster potential. Fundamentally, the underlying sector enjoys a massive footprint. According to Grand View Research, the global biotech market size reached a valuation of $1.37 trillion last year. However, the segment might expand at a compound annual growth rate (CAGR) of 13.96% from 2023 to 2030, per analysts. By the end of the forecast period, the segment might post revenue of $3.88 trillion. Therefore, top biotech stocks to buy will always attract speculative interest.

However, investing in biotech stocks presents significant risks. Primarily, anything can happen during the course of clinical trials for new therapeutics. And investors don’t waste time punishing shares, especially those tied to financially unstable enterprises. Nevertheless, high-potential biotech stocks command attention because of their possible capacity to deliver scientific breakthroughs. If you can handle the heat, below are three enticing ideas to consider.

Novo Nordisk (NVO)

A Danish multinational pharmaceutical company, Novo Nordisk (NYSE:NVO) is one of the top players in the field. It’s also one of the top biotech stocks with blockbuster potential, particularly because of its long track record. Specifically, Novo might be enticing because of its drug Wegovy. Per Fierce Pharma, Wegovy helps certain obese patients lower their weight. Last year, the drug nabbed its first approval by the U.S. Food and Drug Administration.

In full disclosure, the publication points out significant challenges for Wegovy, particularly regarding manufacturing setbacks delaying supplies. In addition, social media and celebrity craze for Wegovy and another Novo treatment Ozempic (which can help with weight loss) imposed more inventory woes.

Nevertheless, having massive demand is a far better problem than the opposite situation. Financially, Novo benefits from a stable balance sheet, solid long-term revenue growth, and consistent profitability. Of note, its trailing-year net margin stands at 32.47%, ranked better than 93.44% of biotech competitors. Thus, it’s a stellar idea for those interested in investing in biotech stocks.

BioMarin Pharmaceutical (BMRN)

A lesser-known entity but still ranking among the high-potential biotech stocks to buy, BioMarin Pharmaceutical (NASDAQ:BMRN) focuses on research in enzyme replacement therapies. At the moment, BioMarin features a market capitalization of $17.27 billion. Since the start of the year, BMRN lost roughly 9% of its equity value. However, in the past 365 days, shares gained nearly 17%.

For those just learning about BioMarin, the regulatory narrative centers sharply on its hemophilia A gene therapy Roctavian. Previously, BMRN garnered much interest as one of the biotech stocks with blockbuster potential because if approved by the FDA, it would be the first gene therapy for the previously mentioned condition. Following many struggles, BioMarin won conditional marketing authorization from the European Commission.

Still, the FDA approval is the big dog. According to Fierce Pharma, the publication noted in early March this year that the regulatory agency moved back its decision date by three months. Ultimately, analysts remain bullish on BMRN, pegging it a moderate buy. Their average price target clocks in at $118.16, implying over 28% upside potential.

Travere Therapeutics (TVTX)

Based in California, Travere Therapeutics (NASDAQ:TVTX) states that its directive focuses on identifying, developing, and delivering life-changing therapies to people living with rare diseases. Although an exciting example of biotech stocks with blockbuster potential, prospective investors should be clear: it’s also one of the riskiest. Since the Jan. opener, TVTX dropped nearly 18% in equity value.

In the trailing year, TVTX gave up more than 24%. Still, those interested in investing in biotech stocks have put Travere on their radar because of Sparsentan, a novel, oral small-molecule therapy that holds promise for primary immunoglobulin A (IgA) nephropathy and focal segmental glomerulosclerosis (two types of kidney disease).

However, those thinking about participating in TVTX must understand that they’re dealing with an aspirational enterprise. For example, Gurufocus points out that it suffers from a rather weak balance sheet. Also, its three-year revenue growth rate (along with its trailing-year net margin) sits in negative territory. Nevertheless, analysts peg TVTX as a consensus strong buy. Their average price target stands at $28.17, implying nearly 66% upside potential.

On the date of publication, Josh Enomoto 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.