In this article, we will discuss: 10 Best Biotech Stocks to Invest In According to Billionaire Steve Cohen.
On April 30, Bloomberg reported that Steve Cohen resigned as president of Point72 Asset Management, and Harry Schwefel was appointed co-CIO. Cohen retained his chairman and CEO positions and established an executive committee to steer strategy. “Over the past few years, our firm has grown across virtually every metric,” Cohen said, pointing out AUM, headcount, and global reach. He added that he wants a structure that matches scale and ambition. Schwefel will collaborate closely with macro and quantitative heads.
Point72 grew after expanding to outside investors in 2018, with assets reaching $50 billion as of April 1. According to a person familiar with the matter, the firm’s returns this year until April 23 were 7.5%, up 3.5% from 17.5% in 2025. Bloomberg reported double-digit rises spanning multiple years since 2018. Cohen said, “I remain fully committed to driving innovation and the strategic direction of the firm.”
With that said, here are the 10 Best Biotech Stocks to Invest In According to Billionaire Steve Cohen.
Methodology:
To curate our list of Steven Cohen’s 10 best Biotech stocks, we scanned Point72 Asset Management’s Q4 2025 13F filings, using Insider Monkey’s 13F database. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. The stocks are ranked in ascending order of Point72 Asset Management’s stake value.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Point72 Asset Management: $117,248,595
On April 29, 2026, H.C. Wainwright hiked Relay Therapeutics, Inc. (NASDAQ:RLAY)’ price target from $19 to $25. It also maintained a Buy rating on the stock. The firm noted Phase 1 zovegalisib triplet results that “derisk” the anticipated Phase 3 study.
On May 5, 2026, Relay Therapeutics, Inc. (NASDAQ:RLAY) announced that the FDA had granted Breakthrough Therapy designation to zovegalisib paired with fulvestrant for PIK3CA-mutant, HR+/HER2- advanced breast cancer, which the Phase 1/2 ReDiscover study findings supported. At ESMO TAT, the company reported 400mg BID doublet results. It showed 11.1 months of median progression-free survival in severely pre-treated patients, with essentially equal efficacy across kinase and non-kinase variants.
For frontline breast cancer, Relay Therapeutics, Inc. (NASDAQ:RLAY) chose zovegalisib plus atirmociclib as the next triplet, with a 44% objective response rate in median third-line patients at unoptimized dosages. A Phase 3 trial aimed at endocrine sensitive patients is planned to begin in early 2027, with Pfizer providing atirmociclib.
Relay Therapeutics, Inc. (NASDAQ:RLAY) ended the first quarter with $642.1 million in cash from $554.5 million at the end of the previous year. It also stated that existing finances would sustain operations through 2029.
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a firm that works to transform the drug discovery process. It focuses on advancing small-molecule therapeutic discovery in targeted oncology.
9. Merck & Co., Inc. (NYSE:MRK)
Point72 Asset Management: $140,885,142
On April 30, Reuters reported that Merck & Co., Inc. (NYSE:MRK) surpassed first-quarter forecasts, with revenue of $16.3 billion, up 5% and beyond analysts’ $15.8 billion projection as per LSEG data. Keytruda sales went up by 12% to $8 billion, exceeding the $7.6 billion consensus and sending shares up as much as 5% premarket.
The quarter carried a one-time cost, i.e., a $3.62 per share charge for the Cidara Therapeutics buyout, pushing results into net loss territory. Even though the adjusted loss of $1.28 per share still surpassed the $1.51 analysts expected.
Winrevair rose 88% to $525 million, exceeding its $479 million forecast. Gardasil’s sales dropped by 19% to $1.07 billion because demand in China and Japan decreased.
CEO Rob Davis said that the company is actively introducing more than 20 new products. The majority of these have blockbuster potential. Merck & Co., Inc. (NYSE:MRK) raised its 2026 earnings forecast to $5.04-$5.16 per share on $65.8-$67 billion in sales. Cantor analyst Carter Gould deemed the revision less persuasive, given the already conservative guidance at the start of the year.
Merck & Co., Inc. (NYSE:MRK) is a healthcare firm that provides health solutions, vaccines, biologic therapies, animal health, and consumer care products. It operates in pharmaceuticals, animal health, and other segments.
8. Praxis Precision Medicines, Inc. (NASDAQ:PRAX)
Point72 Asset Management: $145,114,060
On May 8, TheFly reported that a Wedbush analyst bumped up Praxis Precision Medicines, Inc. (NASDAQ:PRAX)’s price target from $130 to $166. It maintained an “Underperform” rating and flagged concerns about the ulixacaltamide filing and valuation.
On May 7, Praxis Precision Medicines, Inc. (NASDAQ:PRAX) stated that the FDA has accepted NDAs for ulixacaltamide and relutrigine, with PDUFA dates of January 29, 2027, and September 27, 2026. CEO Marcio Souza said that the company is “positioning us for two U.S. launches within the next eight months,” given EMBRAVE research showing a 77% reduction in placebo-adjusted seizure rates.
The company ended the quarter with cash and investments of about $1.4 billion as of March 31, 2026, extending its runway into 2028. It posted a net loss of $92.6 million for the quarter. The firm’s research and development spending went to $78.0 million, while general and administrative costs reached $27.9 million.
Praxis Precision Medicines, Inc. (NASDAQ:PRAX) also stated that it expects extra clinical readouts in 2026. This includes the POWER1 and EMERALD trials.
Praxis Precision Medicines, Inc. (NASDAQ:PRAX) is a clinical-stage biopharmaceutical company. It works on two proprietary platforms, i.e., Cerebrum and Solidus.
7. Immunome, Inc. (NASDAQ:IMNM)
Point72 Asset Management: $151,110,769
On April 29, Immunome, Inc. (NASDAQ:IMNM) reported the filing of a new drug application with the US Food and Drug Administration for varegacestat to treat people with desmoid tumors. The company grounded the filing in Phase 3 RINGSIDE trial data.
Immunome, Inc. (NASDAQ:IMNM) reported the trial hit its primary endpoint, which was improved progression-free survival with an 84% reduction in risk of disease progression or death compared to placebo. The company’s confirmed response rate for varegacestat was 56% compared to 9% for placebo in a blinded, independent central review.
Immunome, Inc. (NASDAQ:IMNM) showed an 83% shrinkage in median tumor size compared to an 11% increase in placebo in an exploratory study. The corporation also stated that the trial met all key secondary endpoints, including improvements in tumor volume reduction and worst pain intensity.
Immunome, Inc. (NASDAQ:IMNM) stated that varegacestat has manageable side effects, with common adverse outcomes including diarrhea, lethargy, rash, nausea, and cough.
6. Guardant Health, Inc. (NASDAQ:GH)
Point72 Asset Management: $153,125,122
On May 8, Evercore ISI analyst Vijay Kumar raised Guardant Health, Inc. (NASDAQ:GH)’s price objective to $95 from $90. It kept an “In Line” rating on the shares.
On May 7, Guardant Health, Inc. (NASDAQ:GH) released its Q1 2026 financial report. The revenue was $301.7 million, marking a 48% YoY growth. The firm credited the rise to oncology sales of $205.0 million, up by 36%, while the biopharma and data revenue surged by 17%. The screening revenue came in at $41.6 million.
The company had a non-GAAP gross margin of 66% and improved from 65%. It had a gross profit of $196.7 million, soaring by 53%. Guardant Health also reported a net loss of $112.1 million, up from $95.2 million.
Helmy Eltoukhy, co-founder and co-CEO, said the revenue increase simply shows “strong momentum.” The oncology test volume climbed by 47% to 86,000 tests. Meanwhile, co-founder and co-CEO AmirAli Talasaz noted that Shield volume momentum helps future growth.
Guardant Health, Inc. (NASDAQ:GH) also upgraded its revenue outlook for 2026 to $1.30 billion to $1.32 billion, representing growth of 32% to 34%.
Guardant Health, Inc. (NASDAQ:GH) is a precision oncology firm. It provides cancer treatment using blood tests, data sets, and analytics.
While we acknowledge the potential of GH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GH and that has 100x upside potential, check out our report about the cheapest AI stock.
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