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5 biotech stocks to add excitement to your portfolio

Biotechnology stocks are usually seen as highly speculative, extreme high risk stocks. In other words, most investors either expect to do very, very well or lose their dough. There’s very little middle ground.

That’s not necessarily the case as you’ll see below, and I’ve discovered five biotech stocks that could be wonderful additions to your portfolio. In no particular order, here they are.

Admedus (ASX:AHZ) began selling its leading product CardioCell in Europe last November. The company received FDA approval in early February to begin selling CardioCel there, and is pursuing market approvals in Asia and other countries. CardioCell is a regenerative tissue product, mostly used for repair and reconstruction of heart defects. 2014 could see the company generate significant growth in cash flow, and its maiden profit is unlikely to be far away.

Global Health (ASX: GLH) offers cloud-based software services to the Australian healthcare industry. The company is seeing strong growth in profits, recently reporting a 38% jump in NPAT for the six months to December 2013, and is forecasting strong growth for the full 2014 financial year.

Azure Health (ASX: AZV) manufactures and supplies healthcare and communications equipment, and like Global Health above, reported stunning results in the last half. Net profit rose 239% as revenues rose 42%. Significant demand for its products in the US has also seen the company open a second manufacturing facility in the US.

Vita Life Sciences (ASX: VSC) could be vitamin maker Blackmores’ smaller cousin. Vita Life sells vitamins, supplements and health products mostly into Asia. Over the past two years, Vita Life has virtually doubled profits each year. With margins and dividends growing strongly, it’s not surprising that Wilson Asset Management Group has recently become a substantial shareholder.

Medical Developments International (ASX: MVP) has two main products, pain relief drug Penthrox and a range of respiratory devices. Having suffered an unfortunate number of setbacks in the last twelve months, Medical Developments may be about to turn things around, after receiving approval for their Space Chamber Plus product range by the US FDA in November 2013. Penthrox could also be about to be approved for sale in a number of European countries.

Foolish takeaway

Three of the above companies are already profitable (GLH, AZV & VSC), showing biotechnology stocks don’t always have to be high risk, highly speculative investments. You may want to add these companies to your watchlist.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga