In this article, we will take a look at some of the most affordable biotech stocks that are currently offering attractive upside potential.
On July 6, BioPharma Dive reported that drug developers producing new medicines for the treatment of autoimmune disorders and cancer accounted for more than 40% of venture financing rounds in the first six months of 2026. During the first half, 26 prominent investors injected approximately $9 billion into venture-funded biotech companies. Of this amount, a little over $3.9 billion was invested in cancer and immune drugmakers.
PitchBook’s Senior Analyst, Ben Zercher, said that while areas such as cardiometabolic disorders and obesity might witness some exits, venture funding is expected to persist across immunology and cancer segments as these areas are not highly time-sensitive.
Zercher highlighted that private immune drugmakers are also gaining a lot of attention, as companies like RayThera, Ouro Medicines, and Candid Therapeutics have been receiving a significant amount of funding. Speaking of potential strategic M&A deals within this space, he stated:
“If your T-cell engager can go between oncology and immunology, that looks really attractive to big pharma right now. I could see M&A activity coming just from a pipeline optionality standpoint as we approach the patent cliff.”
With that background, let’s explore our 10 Affordable Biotech Stocks to Buy Right Now.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed biotech companies with market capitalizations above $2 billion and a forward P/E ratio below 10. Also, we only shortlisted stocks with at least 30% upside potential, according to consensus, as of the July 10 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Cogent Biosciences Inc. (NASDAQ:COGT)
Cogent Biosciences Inc. (NASDAQ:COGT) is one of the 10 affordable biotech stocks to buy right now.
On June 30, Cogent Bioscience Inc. (NASDAQ:COGT) disclosed that it filed a New Drug Application for bezuclastinib, a drug for the treatment of Advanced Systemic Mastocytosis. The application to the U.S. FDA is backed by encouraging clinical results from the APEX key trial.
Cogent’s President and Chief Executive Officer, Andrew Robbins, stated that they are currently engaging closely with the FDA on each of its three submissions. He remains optimistic that bezuclastinib will attain its initial approvals by the end of 2026. He also acknowledged the efforts of the company’s development team, stating:
“I’d also like to congratulate our small, but exceptionally talented, Cogent development team, whose amazing work analyzing, presenting and submitting data from three pivotal trials in less than twelve months has rapidly positioned the company to achieve our vision of creating best-in-class therapies for patients fighting rare, mutational driven diseases.”
Back in mid-June, the company revealed preclinical findings for its innovative JAK2 V617F mutation-specific inhibitor at the European Hematology Association Congress 2026. Robbins stated that this selective inhibitor has the ability to target the underlying mutational cause of a disease while also reducing the off-target blood-related impacts. He added that they are currently expediting the program and also plan to file the Investigational New Drug application in 2026.
Cogent Biosciences Inc. (NASDAQ:COGT) is a clinical-stage biotechnology company that develops precision therapeutics for genetically defined illnesses. The company’s lead therapeutic candidate, bezuclastinib, is a selective tyrosine kinase inhibitor nearing a Phase 3 trial. It is designed to target KIT receptor mutations involved in systemic mastocytosis and advanced gastrointestinal stromal tumors.
