10 Best Biotech Stocks Under $10

In this article, we discuss the 10 best biotech stocks under $10. You can skip our detailed analysis of the biotech stocks and industry outlook, and go directly to see the 5 Best Biotech Stocks Under $10

Biotech stocks are facing a decline in September after Biogen gave a disappointing outlook for near-term sales of its Alzheimer’s disease treatment Aduhelm. The sector also took a hit after the Biden administration announced plans to further regulate drug prices. However, this could present an attractive entry point into biotech stocks for long-term investors.

Healthcare stocks have always been on the investors’ radar due to the long-term potential growth they offer. Especially, due to the onset of Covid-19 in 2020, the stock market witnessed a renewed interest in the healthcare sector, with biotech stocks maintaining their preeminence. The biotech industry encompasses the companies that develop drugs and therapies for treatments of different medical conditions. Some of the notable biotech companies include AstraZeneca PLC (NASDAQ: AZN), AbbVie Inc. (NYSE: ABBV), Abbott Laboratories (NYSE: ABT) and Merck & Co. (NYSE: MRK).

Moreover, the biotech sector has generated profitable returns for the shareholders in the past. NASDAQ Biotechnology Index (NBI), which represents 98% of all U.S. listed biotech companies, was up 73% of the time in the past 27 years, according to a report by Torreya Partners LLC.

Some of the notable biotech stocks under $10 include Amarin Corporation plc (NASDAQ: AMRN), Mersana Therapeutics, Inc. (NASDAQ: MRSN), Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE), BioDelivery Sciences International, Inc. (NASDAQ: BDSI), Infinity Pharmaceuticals, Inc. (NASDAQ: INFI), and Savara Inc. (NASDAQ: SVRA).

Our Methodology: 

Let’s analyze our list of the 10 best biotech stocks under $10. We took into account hedge fund sentiments, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.

10 Best Biotech Stocks Under $10

Photo by National Cancer Institute on Unsplash

Why pay attention to hedge fund sentiment while choosing stocks?

Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

10 Best Biotech Stocks Under $10

10. Anixa Biosciences, Inc. (NASDAQ: ANIX)

Number of Hedge Fund Holders: 2

Anixa Biosciences, Inc. (NASDAQ: ANIX) is a biotech company that develops therapies and vaccines to treat unmet and serious oncological and infectious diseases. The company utilizes the latest technological developments to further enhance the efficacy of its treatments. Anixa Biosciences, Inc. (NASDAQ: ANIX) ranks tenth on our list of the best biotech stocks under $10.

Recently, Anixa Biosciences, Inc. (NASDAQ: ANIX) carried out a genomic variant analysis which showed the efficacy of its potential Covid-19 compounds against the Delta variant. In August, HC Wainwright lifted its price target on Anixa Biosciences, Inc. (NASDAQ: ANIX) to $11, with a ‘Buy’ rating on the shares.

As of Q2 2021, 2 hedge funds tracked by Insider Monkey have positions in Anixa Biosciences, Inc. (NASDAQ: ANIX), worth $722,000. The number of hedge funds remained the same in the previous quarter, with a total value of $156,000. Jim Simons’ Renaissance Technologies is the company’s largest shareholder, with shares worth $483,000.

Like AstraZeneca PLC (NASDAQ: AZN), Amarin Corporation plc (NASDAQ: AMRN), AbbVie Inc. (NYSE: ABBV), BioDelivery Sciences International, Inc. (NASDAQ: BDSI), Abbott Laboratories (NYSE: ABT), Merck & Co. (NYSE: MRK), and Johnson & Johnson (NYSE: JNJ), Anixa Biosciences, Inc. (NASDAQ: ANIX) is one of the notable biotech stocks gaining investors’ attention in 2021.

9. Brickell Biotech, Inc. (NASDAQ: BBI)

Number of Hedge Fund Holders: 4

Brickell Biotech, Inc. (NASDAQ: BBI) is an American biotech company that is focused on developing prescription therapeutics for dermatological diseases. Along with this, the company also develops novel therapies for autoimmune and other debilitating diseases. Brickell Biotech, Inc. (NASDAQ: BBI) ranks ninth on our list of the best biotech stocks under $10.

Recently, Brickell Biotech, Inc. (NASDAQ: BBI) inked an agreement with Voronoi, Inc., a Korean biotech company, to manufacture new kinase inhibitors. This agreement would grant the company to expand its research and developments to global markets. In Q2 2021, Brickell Biotech, Inc. (NASDAQ: BBI) reported revenue of $0.15 million, beating the market estimates by $0.1 million. Recently, Lake Street rated the stock as a ‘Buy’, with a $6 price target due to the company’s significant agreement with Voronoi Inc.

The number of hedge funds having stakes in Brickell Biotech, Inc. (NASDAQ: BBI) increased to 4 in Q2 2021, compared with 2 in the previous quarter. The total value of these stakes is $1.6 million.

8. Savara Inc. (NASDAQ: SVRA)

Number of Hedge Fund Holders: 12

Savara Inc. (NASDAQ: SVRA) stands eighth on our list of the best biotech stocks under $10. It is a clinical-stage biotech company focused on developing treatments for rare respiratory diseases. The company has significant experience in orphan drug development and pulmonary medicine.

Recently, Piper Sandler lifted its price target on Savara Inc. (NASDAQ: SVRA) to $7, with an ‘Overweight’ rating on the shares. Yasmeen Rahimi, the firm’s analyst, turned ‘even more bullish’ on the stock due to the company’s Phase 3 study of IMPALA-2, a drug to evaluate the efficacy and safety of molgramostim. In Q2 2021, Savara Inc. (NASDAQ: SVRA) posted a GAAP EPS of -$0.07, beating the estimates by $0.05.

As of Q2 2021, 12 hedge funds tracked by Insider Monkey have positions in Savara Inc. (NASDAQ: SVRA), up from 10 in the previous quarter. The total value of these stakes is $28.9 million.

7. CASI Pharmaceuticals, Inc. (NASDAQ: CASI)

Number of Hedge Fund Holders: 13

CASI Pharmaceuticals, Inc. (NASDAQ: CASI) is an American biopharmaceutical company that develops and markets therapeutics addressing serious medical conditions, such as cancer. The company sells oncology drugs and drug candidates in Hong Kong, Taiwan, China, and Macau. CASI Pharmaceuticals, Inc. (NASDAQ: CASI) ranks seventh on our list of the best biotech stocks under $10.

In Q2 2021, CASI Pharmaceuticals, Inc. (NASDAQ: CASI) posted a GAAP EPS of -$0.05, beating the estimates by $0.02. The consolidated revenue of $7.16 million presented a 168.2% year-over-year growth. In May, BTIG initiated its coverage of CASI Pharmaceuticals, Inc. (NASDAQ: CASI) with a ‘Buy’ rating and a $4 price target. The firm’s analyst, Justin Zelin noted that the company’s major revenue comes from Evomela, a chemotherapy drug used to treat multiple myeloma. In the second quarter, Evomela sales resulted in a 173% growth in gross revenue, compared with 2020 levels.

Of the 873 hedge funds tracked by Insider Monkey, 13 hedge funds have positions in CASI Pharmaceuticals, Inc. (NASDAQ: CASI) as of Q2 2021, up from 10 in the previous quarter. The stakes are valued at $23.8 million. Mitchell Blutt’s Consonance Capital Management is the company’s largest shareholder, with 10.3 million shares, worth $15.9 million.

In addition to AstraZeneca PLC (NASDAQ: AZN), Amarin Corporation plc (NASDAQ: AMRN), AbbVie Inc. (NYSE: ABBV), BioDelivery Sciences International, Inc. (NASDAQ: BDSI), Abbott Laboratories (NYSE: ABT), Merck & Co. (NYSE: MRK), and Johnson & Johnson (NYSE: JNJ), analysts and investors are also paying attention to CASI Pharmaceuticals, Inc. (NASDAQ: CASI) amid the company’s long-term growth potential.

6. Viking Therapeutics, Inc. (NASDAQ: VKTX)

Number of Hedge Fund Holders: 13

Viking Therapeutics, Inc. (NASDAQ: VKTX) is an American biotechnology company that is focused on the development of novel and orally available therapies for the treatment of metabolic and endocrine disorders. The company ranks sixth on our list of the best biotech stocks under $10.

In July, BTIG listed Viking Therapeutics, Inc. (NASDAQ: VKTX) amongst its top picks in the biotech sector, especially the companies working in the field of non-alcoholic steatohepatitis (NASH). The firm resumed its coverage of the stock with a ‘Buy’ rating and a $20 price target this July. In Q2 2021, Viking Therapeutics, Inc. (NASDAQ: VKTX) posted a GAAP EPS of -$.20, in-line with the estimates. The company ended the quarter with cash equivalents and short-term investments of $228.3 million.

As of Q2 2021, 13 hedge funds tracked by Insider Monkey have positions in Viking Therapeutics, Inc. (NASDAQ: VKTX), worth roughly $30 million. The number of hedge fund holders remained the same in the previous quarter, with a total value of $33.2 million. Park West Asset Management is the company’s leading shareholder, with 1.6 million shares, worth $9.9 million.

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Disclosure. None. 10 Best Biotech Stocks Under $10 is originally published on Insider Monkey.