In this article, we will take a detailed look at the 10 Best Biotech Stocks to Buy According to Billionaire Steve Cohen.
Steve Cohen, whose success at SAC Capital made him one of the most successful hedge fund managers on Wall Street, is a worried man. The chairman and CEO of hedge fund Point72 Asset Management believes there is a 45% chance that the US economy will plunge into recession.
Amidst recession fears, the billionaire investor is closely watching economic data for insights into the direction the market is likely to move.
“What I’m looking for is… yeah the markets have rallied, it’s great… I want to see when the data turns down how the market’s going to react and that’ll tell me a lot about whether we’re priced correctly or not.”
The remarks come as the overall market has recouped all the losses accrued in April as President Donald Trump waged an aggressive trade and tariff war. Even as the overall market remains bullish with the S&P 500 up by about 5%, the SPDR S&P Biotech ETF (XBI) remains under pressure, down more than 11% in 2025.
Nevertheless, the underperformance has not stopped billionaire investor Cohen from diversifying Point72 Asset Management’s investment portfolio into the biotechnology sector. That’s because biotechnology companies working on game-changing drugs offer high-risk, high-reward investment opportunities.
In addition to diversification, he relies on a long-short equity strategy and sector-aligned model to extract value from the equity markets. The investment strategy was the catalyst behind the hedge fund’s returning approximately 19% in 2024 and improving from a 10.6% return in 2023.
Considering the current economic outlook, let’s take a closer look at our list of the 10 Best Biotech Stocks to Buy According to Billionaire Steve Cohen.
Steven Cohen of Point72 Asset Management
Our Methodology
To compile the list of the best biotech stocks to buy according to billionaire Steve Cohen, we scanned Point72 Asset Management’s equity portfolio. We settled on Steve Cohen’s top biotech investment plays, with tremendous long-term prospects. Upon analyzing, we ranked the stocks in ascending order based on Point72 Asset Management’s equity stake.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Biotech Stocks to Buy According to Billionaire Steve Cohen
10. IDEAYA Biosciences, Inc. (NASDAQ:IDYA)
Point72 Asset Management Equity Stake: $2.29 Million
Number of Hedge Fund Holders: 30
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 22, TD Cowen began coverage of IDYA with a Buy rating, highlighting the company’s $1.91 billion valuation and strong analyst consensus.
Price targets span $25 to $66, reflecting optimism for its expanding pipeline, which is set to include nine clinical-stage programs that the firm praised as “the best of targeted oncology.”
Among the highlights, TD Cowen emphasized the daro + criz combo therapy targeting metastatic uveal melanoma, with a 2026 launch and promising neoadjuvant prospects. The firm also signaled confidence in upcoming DLL3 ADC results and noted that MAT2A’s efficacy could complement Trodelvy treatments, adding further depth to Ideaya’s clinical momentum.
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is a clinical-stage oncology company focused on discovering and developing targeted therapies for cancer patients. It utilizes molecular diagnostics to identify patient populations most likely to benefit from their therapies.
9. Zai Lab Limited (NASDAQ:ZLAB)
Point72 Asset Management Equity Stake: $3.19 Million
Number of Hedge Fund Holders: 26
Zai Lab Ltd (NASDAQ:ZLAB) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On June 30, Leerink Partners raised its price target for the stock to $75 from $73. The research firm also reiterated an ‘Outperform’ rating on the stock.
The research firm hiked its price target following positive Phase III trial results from the FORTITUDE-101 study. The study was evaluating bemarituzumab as a first-line FGFR2B-positive gastric cancer treatment. The candidate drug, developed in partnership with Amgen, met its primary endpoint while demonstrating a significant and clinically meaningful overall survival benefit compared to placebo plus chemotherapy.
Following the positive results, Zai Labs plans a second Phase III trial, FORTITUDE-102, which will evaluate bemarituzumab in combination with chemotherapy and nivolumab. The company expects top-line data in the second half of the year that will affirm the candidate drug as a first-line treatment for gastric cancer. It also plans to file for regulatory approval in China following the positive results.
Zai Lab Ltd (NASDAQ:ZLAB) is a biopharmaceutical company that discovers, develops, and commercializes innovative medicines for oncology, autoimmune disorders, infectious diseases, and neurological disorders.
8. Roivant Sciences Ltd. (NASDAQ:ROIV)
Point72 Asset Management Equity Stake: $6.19 Million
Number of Hedge Fund Holders: 53
Roivant Sciences Ltd. (NASDAQ:ROIV) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 10, Goldman Sachs resumed coverage of the stock with a ‘Buy’ rating and a $19 price target.
The investment bank’s bullish outlook on the stock is based on the company’s strong clinical pipeline and potential market opportunities. The company’s subsidiary, Pulmovant, delivered positive Phase 1 data for mosliciguat, an inhaled treatment for pulmonary hypertension. In addition, the firm is optimistic about the anticipated positive results from the Phase 3 VALOR clinical trials.
The Buy rating follows the authorization of Roivant Sciences to repurchase $500 million in shares, following the completion of a previous $1.5 billion program. The new program underscores the company’s commitment to returning value to shareholders.
Roivant Sciences Ltd. (NASDAQ:ROIV) is a biotechnology company that develops and commercializes innovative medicines and technologies. Its clinical product candidates include IMVT-1402, an antibody that targets the neonatal Fc receptor for the treatment of Graves’ disease and difficult-to-treat rheumatoid arthritis.
7. BridgeBio Pharma Inc. (NASDAQ:BBIO)
Point72 Asset Management Equity Stake: $6.87 Million
Number of Hedge Fund Holders: 59
BridgeBio Pharma Inc. (NASDAQ:BBIO) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 21, Truist Securities initiated coverage of BBIO with a Buy rating and a $66 price target, spotlighting the promising launch of Attruby for treating ATTR-CM.
Citing its growing use as a first-line therapy due to ease of access and better stabilizer data, Truist sees strong traction among tafamidis-progressing patients.
With the ATTR-CM market expected to reach $20 billion, Truist views significant upside for Attruby despite ongoing patent litigation from Pfizer. The firm remains optimistic about BridgeBio’s IP position and also highlighted near-term growth catalysts from its late-stage pipeline, particularly starting in the second half of 2025.
BridgeBio Pharma Inc. (NASDAQ:BBIO) is a biopharmaceutical company that develops and delivers transformative medicines for genetic diseases and cancers with clear genetic drivers. It boasts a pipeline of candidate drugs, some in early-stage research and others in advanced clinical trials.
6. Genmab A/S (NASDAQ:GMAB)
Point72 Asset Management Equity Stake: $18.09 Million
Number of Hedge Fund Holders: 20
Genmab A/S (NASDAQ:GMAB) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 8, Truist Securities reiterated a ‘Buy’ rating on the stock and increased its price target to $46 from $45.
According to Truist Securities, the current valuation does not depict the company’s fair value. That’s because it boasts an established revenue and solid pipeline potential. The price target adjustment underscores Truist Securities’ confidence about Genmab’s revenue outlook for 2025.
The research firm is confident about the company’s cancer drug Darzalex as prescription data indicates 10% quarter-over-quarter growth in Q2. The firm is also bullish about the company’s other products, including Epkinly and Kesimpta. Truist Securities has also expressed confidence in Genmab’s pipeline assets, including Rina-S, Acasun, and Gen1042, which it believes are undervalued.
Genmab A/S (NASDAQ:GMAB) is a biotechnology company specializing in the development of antibody therapeutics for cancer treatment. It utilizes advanced antibody technologies, such as DuoBody and HexaBody, to create next-generation therapeutic antibodies.
5. Incyte Corporation (NASDAQ:INCY)
Point72 Asset Management Equity Stake: $20.71 Million
Number of Hedge Fund Holders: 37
Incyte Corporation (NASDAQ:INCY) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 15, UBS reiterated a ‘Neutral’ rating on the stock and increased its price target to $62 from $61.
The price hike comes as UBS expects higher sales for Incyte’s Niktimvo, a treatment for chronic Graft-versus-Host Disease (cGVHD). Amid the expected higher sales, UBS has revised its 2026 earnings per share estimate of $6.36 from $6.26.
UBS also maintained a 9.5x price-to-earnings multiple on Incyte, as it expects the company’s second-quarter earnings call to provide clarity on the company’s strategic direction. The company’s pipeline has already received a boost following the FDA’s extension of the review for ruxolitinib cream for pediatric atopic dermatitis.
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapies in oncology and inflammation & autoimmunity. It also boasts a growing portfolio of treatments for other diseases, including those in dermatology.
4. Madrigal Pharmaceuticals (NASDAQ:MDGL)
Point72 Asset Management Equity Stake: $21.81 Million
Number of Hedge Fund Holders: 46
Madrigal Pharmaceuticals (NASDAQ:MDGL) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 22, MDGL announced a $500 million senior secured credit facility with Blue Owl Capital Inc. (NYSE:OWL), including a $350 million initial term loan and a $150 million delayed draw option through 2027.
The non-dilutive funding will refinance $115 million in existing debt and support strategic growth, with potential for an additional $250 million. Madrigal maintains a strong current ratio of 5.91, signaling solid liquidity.
The capital will primarily advance Madrigal’s pipeline for metabolic dysfunction-associated steatohepatitis (MASH), led by its FDA-approved drug Rezdiffra—the first treatment for MASH with moderate to advanced fibrosis. A Phase 3 trial is underway to evaluate Rezdiffra for compensated MASH cirrhosis. With strong launch momentum and a patent expected to extend protection through 2044, Madrigal is positioned to lead in MASH therapeutics.
Madrigal Pharmaceuticals (NASDAQ:MDGL) is a biotech company that develops and commercializes novel therapies for metabolic dysfunction-associated steatohepatitis (MASH), also known as non-alcoholic steatohepatitis (NASH).
3. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Point72 Asset Management Equity Stake: $24.36 Million
Number of Hedge Fund Holders: 47
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 17, Morgan Stanley upgraded FOLD to Overweight with a $12 price target, citing its strong intellectual property position ahead of a key legal decision with Aurobindo.
The firm also pointed to Amicus’s solid financials—including a 90.6% gross margin and a current ratio of 3.34—and growing confidence in patient shifts toward PomOp over Nexviazyme/Lumizyme.
Morgan Stanley adjusted its sales forecasts slightly below consensus for Galafold and PomOp, but remains bullish due to Amicus’s recent licensing of DMX-200 for FSGS treatment. With strategic supply chain planning and U.S. inventory in place, management expects minimal tariff impact in 2025, reinforcing the company’s operational resilience.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is a global biotechnology company that develops and delivers transformative medicines for people living with rare metabolic diseases. It leverages innovative technology platforms to create treatments for genetic diseases, with a strong emphasis on patient needs.
2. Cogent Biosciences, Inc. (NASDAQ:COGT)
Point72 Asset Management Equity Stake: $31.72 Million
Number of Hedge Fund Holders: 37
Cogent Biosciences, Inc. (NASDAQ:COGT) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 18, Citi raised its price target of the stock to $22 from $15 while maintaining a ‘Buy’ rating.
The price target hike comes as the company delivers top-line results from bezuclastinib (bezu) in non-advanced systemic mastocytosis (NonAdvSM). According to Citi, investors are increasingly viewing bezuclastinib as an improvement over Blueprint’s Ayvakit. The research firm expects the company to deliver positive symptom and biomarker data at ASH in December.
Beyond bezuclastinib, Cogent Biosciences is also advancing its other pipeline candidates. The company plans to release advanced systemic mastocytosis (AdvSM) data from the APEX trial in the second half of the year. It will also provide results from the PEAK trial for gastrointestinal stromal tumors (GIST).
Cogent Biosciences, Inc. (NASDAQ:COGT) is a biotechnology company that develops precision therapies for genetically defined diseases. It focuses on diseases caused by genetic mutations. Its lead program, bezuclastinib, is a tyrosine kinase inhibitor designed to target the KIT D816V mutation, which drives systemic mastocytosis, as well as other mutations in KIT exon 17.
1. Ascendis Pharma A/S (NASDAQ:ASND)
Point72 Asset Management Equity Stake: $88.71 Million
Number of Hedge Fund Holders: 52
Ascendis Pharma A/S (NASDAQ:ASND) is one of the best biotech stocks to buy according to billionaire Steve Cohen. On July 14, the company delivered positive clinical data from the Phase 3 PaTHway Trial, which affirmed that TransCon PTH (palopegteriparatide) offered benefits to adults with hypoparathyroidism.
Hypoparathyroidism is an endocrine disorder characterized by a deficiency of parathyroid hormone, which regulates the balance of calcium and phosphate. Serious side effects from the illness can include cognitive decline, renal problems, and neuromuscular irritability.
The new three-year data for the Phase 3 PaTHway Trial, presented at the ENDO 2025 conference, showed improvements in biochemical markers, kidney function, and quality of life. Kidney function was maintained through week 156, as the mean glomerular filtration rate (eGFR) increased by 8.76 mL/min/1.73 m². No new safety concerns emerged during the trial phase, as the treatment was well-tolerated.
“These responses, including normalization of skeletal dynamics with significant and clinically meaningful improvements in kidney function, demonstrate the long-term benefits of this treatment option for the vast majority of adults with hypoparathyroidism,” said Aimee Shu, Executive Vice President and Chief Medical Officer at Ascendis Pharma.
Ascendis Pharma A/S (NASDAQ:ASND) is a biopharmaceutical company that develops new therapies to address unmet medical needs using the innovative TransCon technology platform. It focuses on rare endocrine diseases and oncology, with the goal of creating best-in-class treatments.
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