In this article, we will look at the 10 Best Low-Priced Biotech Stocks to Buy Now.
Is Now the Time to Buy Biotech Stocks?
On May 8, Michael Yee, Senior Biotech Analyst at Jefferies, appeared on CNBC to discuss how tariffs and policy risks are pressuring the biotech industry, while simultaneously iterating that low valuations in the sector may present buying opportunities once the uncertainty clears.
Talking about the broader impact of tariffs on the biotech sector, he said that the estimated tariff rate would be around 50%, while the negative EPS impact would be around -4-5%. According to Yee, the sector is facing several challenges that have caused significant pressure and anxiety among biotech investors. One of them is definitely sector-specific tariffs. The 50% estimation is a manageable impact for many of the biotech companies, but there are also other challenges being floated. Another factor is the most favored nations that could drop drug prices by as much as 40% to 50%, making it a related impact. Assuming all these impacts are going into place, there are definitely uncertain downside risks to the model.
However, the takeaway is that many of these stocks are down more than 20-30% and, in fact, are trading at a decade-low P/E multiple. Therefore, while these uncertainties may be out there over the next few weeks or months, the stocks are expected to move higher after that. If we look back at some other stocks with tariffs, many are obviously higher off the bottoms. They have thus fallen to an attractive valuation, which is why there might be an opportunity to buy them.
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Does the US Pay More For Drugs Than Other Countries?
Shedding light on the most favored nation policy, Yee said it is not new. It is also not a new concept that the US, on average, pays around 40% to 50% more for drugs as compared to the basket of other, say, five to ten major developed nations. The country also gets its drugs faster, and is the home of innovation.
Many of the pharmaceutical company executives over the past few weeks pointed out that most of those countries are also facing downside issues because of R&D investments, getting the drugs years later, and obviously, the countries aren’t benefiting from access to any of these drugs. However, the United States government does negotiate 15-20 drugs per year and will be doing that for the next decade.
With these trends in view, lets look at the 10 best low-priced biotech stocks to buy now.
A biotechnologist in a white lab coat manipulating genes in a laboratory.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 50 low-priced biotech stocks and then chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of hedge fund sentiment.
Note: The data was recorded on May 9.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
10 Best Low-Priced Biotech Stocks to Buy Now
10. Wave Life Sciences Ltd. (NASDAQ:WVE)
Stock Price: $6.58
Number of Hedge Fund Holders: 34
Wave Life Sciences Ltd. (NASDAQ:WVE) is a clinical-stage biotechnology company that develops and commercializes ribonucleic acid (RNA) medicines through PRISM, a discovery and drug development platform. PRISM combines a deep understanding of human genetics with chemistry innovation and multiple modalities for scientific discoveries and breakthroughs that treat prevalent and rare disorders.
It is developing treatments for obesity and other metabolic disorders, Duchenne muscular dystrophy, Huntington’s disease (HD), and alpha-1 antitrypsin deficiency. The company ranks tenth on our list of the best low-priced biotech stocks to buy now.
On May 9, analyst Andrew Fein of H.C. Wainwright maintained a Buy rating on Wave Life Sciences Ltd. (NASDAQ:WVE), retaining the price target of $22.00. The analyst based the rating on the company’s promising clinical data and innovative approach, detailing that its WVE-007 program targeting weight loss reflects significant growth potential. This holds especially true if the drug’s kinetics have a more targeted effect on fat than muscle.
Wave Life Sciences Ltd. (NASDAQ:WVE) is also advancing its RNA editing technology, which may offer a controlled method to produce functional proteins that have potential benefits for lung and liver health. The company’s RNA editing trials have produced early data suggesting a promising future for their treatment, and the analyst even considered the possibility of a once-monthly dosing regimen.
9. 89bio, Inc. (NASDAQ:ETNB)
Stock Price: $7.70
Number of Hedge Fund Holders: 35
89bio, Inc. (NASDAQ:ETNB) is a clinical-stage biopharmaceutical company that develops and commercializes innovative therapies to treat liver and cardiometabolic diseases. The company’s product pipeline includes pegozafermin, FGF21, NASH, and SHTG.
On April 29, Leerink Partners analyst Thomas Smith reiterated his bullish stance on the company, giving a Buy rating due to its strong position in the biopharma sector. 89bio, Inc. (NASDAQ:ETNB) reaffirmed its clinical data timelines for pegozafermin, its lead asset for NASH and severe hypertriglyceridemia. It is undergoing robust operational execution, with phase 3 trials proceeding on timeline.
The analyst further supported pegozafermin’s potential as a best-in-class treatment with a favorable safety profile and competitive efficacy. It also has an optimistic market potential as interest in the FGF21 mechanism, which is targeted by the treatment, is growing among patients and clinicians. Smith has a $37 price target for ETNB stock.
8. Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN)
Stock Price: $6.45
Number of Hedge Fund Holders: 36
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) develops and commercializes targeted therapies for genetically defined cancers in patients of all ages. Its products include DAY101 and pimsertib. It is the eighth-best low-priced biotech stock to buy now.
On May 7, analyst Andres Y. Maldonado from H.C. Wainwright reiterated a buy rating on the stock, keeping the price target at $36.00 and highlighting its promising trajectory. The analyst reasoned that the company’s OJEMDA product, which treats certain kinds of brain tumors, showed consistent growth, attaining considerable sequential revenue growth and a notable increase in cumulative prescriptions.
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) is also advancing its pipeline through the FIREFLY-2 trial, which, according to the analyst, has the potential to bolster OJEMDA’s market position. The company has a robust strategy for long-term growth, which includes the promising early-stage development of its anti-PTK7 ADC and a focus on overcoming physician conservatism in pediatric oncology.
7. Nurix Therapeutics, Inc. (NASDAQ:NRIX)
Stock Price: $9.50
Number of Hedge Fund Holders: 36
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes innovative small molecules and antibody therapies as a novel treatment approach for inflammatory conditions, cancer, and other challenging diseases.
On April 14, Needham analyst Gil Blum maintained their bullish stance on Nurix Therapeutics, Inc. (NASDAQ:NRIX), giving it a Buy rating due to its promising preclinical data and innovative capabilities. The company’s DEL-AI discovery platform can identify novel binders for a range of targets, bringing a positive light to its operations. Blum has a price target of $27 on NRIX stock.
Nurix Therapeutics, Inc.’s (NASDAQ:NRIX) BRAF degrader, NRX-0305, is also effective in targeting multiple mutation classes and has the potential to penetrate the central nervous system. The analyst further reasoned that the compound showed synergistic effects when used with other treatments.
These advancements thus position Nurix Therapeutics, Inc. (NASDAQ:NRIX) to develop groundbreaking therapies, justifying the Buy rating. On May 7, Piper Sandler analyst Biren Amin also reiterated a Buy rating on the company, setting a price target of $35.00. The company is seventh on our list of the best low-priced biotech stocks to invest in.
6. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Stock Price: $3.00
Number of Hedge Fund Holders: 37
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a clinical-stage precision medicine company that uses advanced computational and experimental technologies to innovate drug discovery. Its primary focus is on genetic disease indications and targeted oncology. The company’s Dynamo platform integrates a range of cutting-edge experimental and computational approaches to understand protein structure and motion in drug discovery.
On May 5, Relay Therapeutics, Inc. (NASDAQ:RLAY) reported its fiscal Q1 2025 results, highlighting significant progress in its clinical programs. It reported a cash runway extended to 2029, with $710 million in cash, cash equivalents, and investments in the quarter. While the company underwent a drop in revenue to $7.7 million, it is focusing on strategic cost reductions, including a reduction in research spending and workforce.
Relay Therapeutics, Inc. (NASDAQ:RLAY) plans to continue executing its clinical programs in the future, with management expressing optimism in its financial strategy to attain its long-term objectives. On May 7, H.C. Wainwright analyst Robert Burns reiterated a Buy rating on Relay Therapeutics, Inc. (NASDAQ:RLAY) and set a price target of $16.00.
5. Cogent Biosciences, Inc. (NASDAQ:COGT)
Stock Price: $4.81
Number of Hedge Fund Holders: 38
Cogent Biosciences, Inc. (NASDAQ:COGT) is a biotechnology company that develops precision therapies for genetically defined diseases. The company’s focus is on its clinical program, bezuclastinib, a selective tyrosine kinase inhibitor that potently inhibits the KIT D816V mutation and other mutations in KIT exon 17. The company ranks fifth on our list of the best low-priced biotech stocks to invest in now.
On May 6, Cogent Biosciences, Inc. (NASDAQ:COGT) released its Q1 2025 earnings, reporting $245.7 million in cash which is expected to support operations until late 2026. It also highlighted significant progress in its clinical trials. The SUMMIT trial reported promising results, with bezuclastinib undergoing a 65% mean improvement in Total Symptom Score for patients with non-advanced systemic mastocytosis.
Throughout 2025, Cogent Biosciences, Inc. (NASDAQ:COGT) plans to release top-line results from its SUMMIT, APEX, and PEAK trials. The commercial launch of bezuclastinib is also expected in 2026, reflecting the company’s focus on advancing its pipeline of genetically driven diseases with unmet medical needs.
In a report released on May 7, Louise Chen from Scotiabank maintained a Buy rating on Cogent Biosciences, Inc. (NASDAQ:COGT) and set a price target of $17.00.
4. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Stock Price: $5.98
Number of Hedge Fund Holders: 40
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is the fourth-best low-priced biotech stock to buy now. The company discovers, develops, and delivers medicines to treat metabolic diseases. Its product portfolio includes the first and only approved oral precision medicine to treat Fabry disease, a clinical-stage treatment paradigm for Pompe disease, and a rare disease gene therapy portfolio.
On May 2, Leerink Partners analyst Joseph Schwartz reiterated their bullish stance on Amicus Therapeutics, Inc. (NASDAQ:FOLD), giving a Buy rating due to its growth potential and strategic positioning. The company recently announced a licensing agreement for DMX-200 to treat focal segmental glomerulosclerosis (FSGS), which has no FDA-approved therapies.
The analyst is bullish on the stock because of this strategic effort to capitalize on the regulatory advancements in the FSGS space. Since there are around 15,000 to 30,000 patients suffering from the condition in the United States, this move presents a significant market opportunity for Amicus Therapeutics, Inc. (NASDAQ:FOLD).
The agreement’s financial terms include a $30 million upfront payment and up to $560 million in milestone payments, highlighting a well-structured yield with the potential to produce considerable returns, supporting the buy rating. Analysts are thus bullish on the stock, and its median price target of $5.98 implies an upside of 167.56% from current levels.
3. Iovance Biotherapeutics Inc. (NASDAQ:IOVA)
Stock Price: $1.75
Number of Hedge Fund Holders: 44
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) is a biopharmaceutical company that develops and commercializes cell therapies as novel cancer immunotherapy products. Its lead product candidate is LN-144, an autologous adoptive cell therapy for metastatic melanoma. The company ranks third on our list of the top low-priced biotech stocks to invest in now.
On May 8, Iovance Biotherapeutics Inc. (NASDAQ:IOVA) reported its fiscal Q1 2025 earnings, with total product revenue reaching $49.3 million. The company also revised its full-year revenue guidance of $250 million to $300 million, down from the previous range of $450 million – $475 million. It is also expecting regulatory approvals for its product Amtagvi, that treats a type of skin cancer, in Canada, the EU, and the UK.
Although Iovance Biotherapeutics Inc. (NASDAQ:IOVA) underwent a net loss of $116.2 million in fiscal Q1 2025, it maintained a strong cash position of $366 million. Management expects it to fund operations well into H2 2026, bringing a positive light to its operations. It is also expanding its treatment network and manufacturing capacity, with more than 80 US ATCs and plans for international market expansion.
In light of such favorable conditions, Mizuho Securities analyst Salim Syed maintained a Buy rating on Iovance Biotherapeutics Inc. (NASDAQ:IOVA) on May 9, setting a price target of $10.00.
2. Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT)
Stock Price: $6.99
Number of Hedge Fund Holders: 45
Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) is a clinical-stage biotechnology company that develops gene therapy treatment options targeting rare pediatric diseases. Its clinical program is an LVV-based gene therapy that treats Fanconi Anemia (FA), a difficult-to-treat genetic disease leading to bone marrow failure and even cancer.
On May 9, LifeSci Capital analyst Cory Jubinville, PhD, maintained a bullish stance on Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT), giving it a Buy rating due to its strategic positioning in the competitive market and its promising developments.
Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) is actively advancing its RP-A601 program for PKP2-associated arrhythmogenic cardiomyopathy (ACM) in a highly competitive market. Despite the competition, the analyst is bullish on the stock because of its approach that involves a higher starting dose, which may lead to favorable outcomes and more robust protein expression.
In another report released on May 9, J.P. Morgan also maintained a Buy rating on the stock with a $44.00 price target.
1. Geron Corporation (NASDAQ:GERN)
Stock Price: $1.18
Number of Hedge Fund Holders: 46
Geron Corporation (NASDAQ:GERN) is a biotechnology company that develops Imetelstat, a telomerase inhibitor in hematologic myeloid malignancies. It focuses on oncology-focused therapeutic products.
On May 7, Gil Blum, an analyst from Needham, maintained a Buy rating on Geron Corporation (NASDAQ:GERN) with an unchanged price target of $5.00. While the company’s Rytelo sales underwent a drop, the analyst highlighted positive indicators, such as improved utilization in earlier treatment lines and rising patient demand. These trends point to a potential sales performance improvement in H2 2025.
Geron Corporation (NASDAQ:GERN) is also expanding its commercial team by around 20% as a strategic step to increase product awareness. The analyst expects this move to positively affect sales later in 2025. In addition, the company has a strong financial position, ending fiscal Q1 2025 with $458 million and maintaining its operational expenditure guidance for the year.
Overall, GERN ranks first among the best low-priced biotech stocks to buy now. While we acknowledge the potential of low-priced biotech stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GERN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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