In this piece, we discuss the 10 Best Small-Cap Biotech Stocks to Buy According to Analysts.
Small-cap biotech stocks are marking their latest resurgence, attracting renewed investor attention. This resurgence, which follows a prolonged period of underperformance, is driven by a broader market rotation and improving technical indicators. Healthcare, including biopharma, is emerging as a constructive sector as investors pull money out of tech, Craig Johnson, Piper Sandler’s Chief Market Technician, highlighted in his interview with CNBC on November 12. The Health Care Select Sector SPDR Fund (XLV) is up 11.09% in 2025 so far.
He cited several previously declining names within the sector showing improvements. He also discussed small-cap biotech stocks in the XBI ETF, which have made multi-year gains. He believes investors could see money flowing out of high-flying AI stocks and into more attractive opportunities in some healthcare and biotech stocks. The iShares Biotechnology ETF has recorded a gain of approximately 25% year-to-date.
Leerink Partners’ David Reisinger also reinforced Johnson’s view the same day, seeing the inflow of capital into biopharma as a generalist investor’s adjustment of their portfolios following a long period of underweighting the sector. This renewed interest in the sector is particularly benefiting both large-cap and small-to mid-cap biotech companies. He noted increased M&A activity in the sector this year, which further bolsters potential upside.
The year has already seen several acquisitions within the biotech space, including Pfizer’s $10 billion acquisition of Metsera, Roche’s $3.5 billion acquisition of 89bio, and Genmab’s $8 billion acquisition of Merus N.V. He believes some undervalued names like Bristol Myers could benefit from upcoming trial readouts, especially in Alzheimer’s disease and novel blood thinner studies.
Thus, the market is seeing a convergence of technical momentum, market rotation, and fundamental catalysts.
This leads us to our list of small-cap biotech stocks, which offers a glimpse into some of the best names within the sector for investors seeking the most promising opportunities in the current market.
Our Methodology
To curate our list of the best small-cap biotech stocks to buy, according to analysts, we relied on screeners, financial media, and ETFs to compile a list of biotech and biotech-related companies with a market capitalization between $300 million and $2 billion. Next, we selected the top 10 stocks with the highest upside potential, as of November 10, 2025. We also considered hedge fund sentiment surrounding each stock, using Insider Monkey’s hedge fund database. Our final list of the best small-cap biotech stocks is ranked in ascending order based on upside potential.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Viridian Therapeutics, Inc. (NASDAQ:VRDN)
Number of Hedge Fund Holders: 39
Upside Potential: 36.71%
With significant upside potential, Viridian Therapeutics, Inc. (NASDAQ:VRDN) secures a spot on our list of the best small-cap biotech stocks to buy according to analysts.
On November 6, 2025, RBC Capital raised its price target on Viridian Therapeutics, Inc. (NASDAQ:VRDN) from $41 to $45, while maintaining an “Outperform” rating. The investment firm’s bullish stance stemmed from clear visibility toward profitability, seen through its increased cash position of $888 million, thanks to financing deals, including $55 million from DRI royalty financing, a $70 million upfront Japan licensing agreement, a $289 million follow-on offering, and access to a $300 million credit facility.
Furthermore, Viridian Therapeutics, Inc. (NASDAQ:VRDN) has completed key patient enrollments in its late-stage clinical studies. Readouts for active and chronic Thyroid Eye Disease (TED) are expected in Q1 and Q2 2026, respectively, driving the investment firm’s bullish stance.
Meanwhile, Viridian Therapeutics, Inc. (NASDAQ:VRDN) reported Q3 2025 results on the previous day. The company closed the quarter with $490.9 million in cash on hand. The cash position further increased as a result of the financing deals. The quarter also marked a significant increase in R&D expenses, which grew from $69.2 million in the same quarter last year to $86.3 million.
Viridian Therapeutics, Inc. (NASDAQ:VRDN) is focused on the development and commercialization of therapies for rare diseases.
9. UroGen Pharma Ltd. (NASDAQ:URGN)
Number of Hedge Fund Holders: 37
Upside Potential: 49.17%
UroGen Pharma Ltd. (NASDAQ:URGN) is one of the best small-cap biotech stocks to buy according to analysts.
On November 6, 2025, UroGen Pharma Ltd. (NASDAQ:URGN) reported its Q3 2025 results, highlighting strong growth in demand alongside its steady commercial expansion. Furthermore, preliminary October figures indicated that demand revenue more than doubled compared to the previous three months. This growth reflects the increasing adoption of physicians amid operational delays. The company closed the quarter with $127.4 million in cash and marketable securities.
As the permanent billing code takes effect in early 2026, UroGen Pharma Ltd. (NASDAQ:URGN) anticipates a smoother process, despite product uptake potentially facing administrative lags of up to 60 days due to reimbursement and coding complexities. Furthermore, the company noted an expansion of its sales force to 82 representatives. With this expansion, the company strengthened physician outreach and patient access across major payers, with coverage accounting for over 95% of insured lives.
The quarter saw UroGen Pharma Ltd. (NASDAQ:URGN)’s net loss widen from $23.7 million in Q3 2024 to $33.3 million, driven by rising R&D expenses and delayed revenue recognition. Looking ahead, the company appears to be in a solid position, focusing on optimizing patient onboarding and accelerating reimbursement cycles, which is well supported by the growth in product demand noted in October. UroGen provided revenue guidance for only JELMYTO, expecting $94 million to $98 million in net revenues for the full year.
UroGen Pharma Ltd. (NASDAQ:URGN) focuses on developing and marketing specialty cancer treatments, delivering targeted, minimally invasive therapies.
8. Liquidia Corporation (NASDAQ:LQDA)
Number of Hedge Fund Holders: 43
Upside Potential: 55.49%
With significant upside potential, Liquidia Corporation (NASDAQ:LQDA) secures a spot on our list of the best small-cap biotech stocks to buy according to analysts.
On November 4, 2025, Raymond James raised its price target on Liquidia Corporation (NASDAQ:LQDA) from $41 to $47, while reiterating a “Strong Buy” rating. The investment firm’s bullish stance reflects YUTREPIA’s 75% growth in U.S. prostacyclin revenue during the third quarter, which turned profitable earlier than expected. Meanwhile, the company raised peak sales estimates to $2 billion from $1.1 billion, thanks to strong early launch performance. The raised guidance boosted analyst sentiment.
Liquidia Corporation (NASDAQ:LQDA) announced Q3 2025 results on November 3, 2025, reporting YUTREPIA net sales of $51.7 million. The quarter marked a net loss of $3.5 million, or $0.04 per diluted share, and positive adjusted EBITDA of $10.1 million. However, YUTREPIA achieved profitability in the first quarter of its full commercial launch. Over 1,500 patients were enrolled in the therapy, alongside more than 2,000 prescriptions, and strong payer coverage was achieved through contracts with the three largest commercial payers.
Liquidia Corporation (NASDAQ:LQDA) ended the quarter with $157.5 million in cash on hand, reporting a net cash flow of $5 million in September. The company’s short-term revenue recognition was affected despite strong early commercial uptake, as roughly 50% of new patients used a 28-day voucher program. Meanwhile, Liquidia is looking for additional clinical applications in IPF and PPF.
With its proprietary PRINT and TRIA platforms, Liquidia Corporation (NASDAQ:LQDA), a clinical-stage pharmaceutical company, focuses on developing therapies for pulmonary arterial hypertension and related cardiopulmonary diseases.
7. Edgewise Therapeutics, Inc. (NASDAQ:EWTX)
Number of Hedge Fund Holders: 38
Upside Potential: 72.45%
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is one of the best small-cap biotech stocks to buy according to analysts.
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) reported its Q3 2025 results on November 6, 2025. The quarter marked continued advancement of its muscular dystrophy and cardiac programs. Meanwhile, its critical GRAND CANYON cohort for sevasemten in Becker muscular dystrophy remains well-positioned for readout in Q4 2026. At the same time, the MESA open-label extension trial noted continued enrollment of nearly all eligible participants. The quarter also saw the Phase 2 CIRRUS-HCM trial of EDG-7500 in hypertrophic cardiomyopathy progressing well, with a program update expected in Q4 2025. Phase 1 dosing of EDG-15400 for heart failure also kicked off.
Due to the clinical activity in EDC-15400, EDC-7500, and the sevasemten program, R&D expenses surged by $3.9 million to $37.5 million, compared to the same quarter a year earlier. With G&A expenses up $0.3 million sequentially, Edgewise Therapeutics, Inc. (NASDAQ:EWTX) recorded a net loss of $40.7 million, or $0.39 per share.
Yet Edgewise Therapeutics, Inc. (NASDAQ:EWTX) closed the quarter with $563.3 million in cash balances, sufficient to provide a runway to support ongoing clinical development and potential future commercial launches.
Edgewise Therapeutics, Inc. (NASDAQ:EWTX), a biopharmaceutical company, develops new therapies for muscular dystrophies and serious cardiac conditions.
6. Structure Therapeutics Inc. (NASDAQ:GPCR)
Number of Hedge Fund Holders: 44
Upside Potential: 105.73%
With significant upside potential, Structure Therapeutics Inc. (NASDAQ:GPCR) secures a spot on our list of the best small-cap biotech stocks to buy according to analysts.
On November 10, 2025, BMO Capital reiterated its “Outperform” rating on Structure Therapeutics Inc. (NASDAQ:GPCR), setting a $100 price target. The firm cited upcoming ACCESS I and II Phase 2b obesity trial readouts, believing they could bolster the company’s competitive position in the weight-loss drug market. The investment firm highlighted easing expectations following Eli Lilly’s recent data, which makes Structure’s results a crucial benchmark.
Meanwhile, Structure Therapeutics Inc. (NASDAQ:GPCR) reported its Q3 2025 results on November 6. The quarter saw the company reaffirm that its ongoing obesity studies remain on track for year-end. In the quarter, the company also noted progress on its oral amylin receptor agonist programs. However, research costs came out high, reaching $59 million, which the company expects to remain elevated due to upcoming trial spending. The net loss widened to $65.7 million, compared to $34 million in Q3 2024.
Structure Therapeutics Inc. (NASDAQ:GPCR) ended the quarter with a strong cash position of $799 million, which will support the company’s continued development and planned study initiations through 2026.
Structure Therapeutics Inc. (NASDAQ:GPCR), a biopharmaceutical company, develops oral small-molecule treatments for metabolic diseases.
5. Vera Therapeutics, Inc. (NASDAQ:VERA)
Number of Hedge Fund Holders: 40
Upside Potential: 108.97%
Vera Therapeutics, Inc. (NASDAQ:VERA) is one of the best small-cap biotech stocks to buy according to analysts.
On November 10, 2025, The Fly reported that H.C. Wainwright increased its price target on Vera Therapeutics, Inc. (NASDAQ:VERA) from $85 to $90, while maintaining a “Buy” rating. The bullish stance reflects the company’s presentation of findings from its ongoing ORIGIN 3 study with atacicept. The investment firm expects a 95% likelihood of atacicept’s launch in IgA nephropathy (IgAN), anticipating the drug to generate $56 million in revenue in the first year, with growth to $2.5 billion by 2033.
On November 6, 2025, Vera Therapeutics, Inc. (NASDAQ:VERA) presented successful Phase 3 trial results for its late-stage kidney disease treatment. The data, presented at the American Society of Nephrology Kidney Week, revealed a 46% decrease in proteinuria along with strong safety outcomes. These results highlight the potential of this therapy to improve the management of chronic renal diseases. To evaluate the study’s impact and plan forthcoming regulatory actions, the company hosted an in-depth conference call with key opinion leaders.
The announcement strengthened investor confidence and suggested growing regulatory progress, with Vera advancing towards filing its Biologics License Application (BLA) for U.S. review. The company’s solid clinical results were validated by peer-reviewed recognition, reinforcing its credibility in nephrology and potentially paving the way for wider market acceptance when the therapy is launched.
Vera Therapeutics, Inc. (NASDAQ:VERA) is focused on developing therapies for severe immunological and renal diseases.
4. Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX)
Number of Hedge Fund Holders: 53
Upside Potential: 121.45%
With significant upside potential, Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) secures a spot on our list of the best small-cap biotech stocks to buy according to analysts.
On November 12, 2025, Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) saw JPMorgan reduce its price target from $40 to $33, while reiterating its “Overweight” rating. The price target adjustment reflects the investment firm’s revisions to its models in the SMID-cap biotechnology group, as reported by The Fly.
Meanwhile, Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) reported Q3 results on November 3, 2025. The quarter saw a 21% increase in total revenue to $45.9 million, reflecting strong uptake of its lead therapies. In particular, Revuforj was included in NCCN guidelines and received FDA approval for a broader patient population, contributing significantly to the company’s sustained growth. Meanwhile, Niktimvo recorded $200 million in annualized revenue.
Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) ended the quarter with $456 million in cash balances, sufficient to support its ongoing operations and pipeline development through to profitability. The company’s net loss narrowed to $60.7 million, or $0.70 per share, compared to $84.1 million, or $0.98 per share, in Q3 2024. Looking ahead, the company projected total R&D costs of $380 to $385 million for the full year.
Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) is a biopharmaceutical company that develops and commercializes targeted therapies for rare and difficult-to-treat cancers.
3. Janux Therapeutics, Inc. (NASDAQ:JANX)
Number of Hedge Fund Holders: 39
Upside Potential: 177.09%
Janux Therapeutics, Inc. (NASDAQ:JANX) is one of the best small-cap biotech stocks to buy according to analysts.
On November 11, 2025, Jones Trading’s Soumit Roy reiterated his “Buy” rating on Janux Therapeutics, Inc. (NASDAQ:JANX), which reflects promising developments in the company’s prostate cancer program. The analyst highlighted the company’s mature data from its Phase 1 trials, which is expected to be released in the fourth quarter of 2025. This includes the company’s innovative T cell-engaging therapies, JANX007 and JANX008. Both therapies have seen significant progress in the prostate cancer space, with JANX007 being tested in earlier metastatic castration-resistant prostate cancer (mCRPC) settings. The total addressable market for these treatments is estimated at $10 billion in the U.S. alone.
Soumit Roy also highlighted the improved efficacy and durability of responses in the taxane-naïve setting, as shown through the promising preliminary data from JANX007. The analyst’s confidence was also boosted by Janux Therapeutics, Inc.’s (NASDAQ:JANX) healthy cash balance of $989 million as of the end of the third quarter.
Janux Therapeutics, Inc. (NASDAQ:JANX) reported its Q3 results on November 7, 2025, recording a net loss of $24.3 million, an improvement from $28.1 million in Q3 2024. The quarter marked strong momentum in its Phase 1 trials for its lead candidates, including T cell-engaging therapies, with preliminary data indicating enhanced efficacy and durability of responses. The company demonstrated disciplined cost management during the quarter, recording a reduction in general and administrative expenses despite an increase of $34.6 million in ongoing R&D investment.
Janux Therapeutics, Inc. (NASDAQ:JANX), a clinical-stage biopharmaceutical company, develops novel immunotherapies using its proprietary TRACTr and ARM platforms.
2. Wave Life Sciences Ltd. (NASDAQ:WVE)
Number of Hedge Fund Holders: 36
Upside Potential: 185.55%
With significant upside potential, Wave Life Sciences Ltd. (NASDAQ:WVE) secures a spot on our list of the best small-cap biotech stocks to buy according to analysts.
On November 13, 2025, Jefferies analyst Roger Song noted that Wave Life Sciences Ltd. (NASDAQ:WVE)’s competitive positioning is improving, with Korro Bio’s KRRO-110 reporting failure to produce protective levels of corrected protein in a Phase 1/2 AATD trial. This led to the discontinuation of Korro Bio’s lead asset. The analyst keeps a “Buy” rating with a $26 price target on Wave Life Sciences.
Meanwhile, Wave Life Sciences Ltd. (NASDAQ:WVE) reported its Q3 results on November 10, 2025, where its $7.6 million revenue missed analyst forecasts of $12.89 million. At the same time, the company reduced its net loss from $61.8 million in Q3 2024 to $53.9 million, despite R&D and G&A expenses increasing to $45.9 million and $18.1 million. Increased costs were related to the company’s ongoing investment in clinical programs, particularly the WVE-007 trial.
Furthermore, the quarter saw Wave Life Sciences Ltd. (NASDAQ:WVE) reporting a cash runway extended through Q2 2027. This will help ensure operational continuity and funding for ongoing clinical and development initiatives. Looking ahead, the company seems well-positioned to advance its clinical-stage pipeline, as it remains focused on RNA-based therapies and strategic expansion of its product development programs.
Wave Life Sciences Ltd. (NASDAQ:WVE), a clinical-stage biotech company, develops and commercializes ribonucleic acid (RNA) medicines with the help of its proprietary PRISM discovery and drug development platform.
1. Biohaven Ltd. (NYSE:BHVN)
Number of Hedge Fund Holders: 39
Upside Potential: 434.13%
Biohaven Ltd. (NYSE:BHVN) is one of the best small-cap biotech stocks to buy according to analysts.
On November 11, 2025, William Blair kept its “Market Perform” rating. The investment firm sees the FDA’s Complete Response Letter (CRL) for Vyglxia as a key driver for pipeline reprioritization. The firm also cited the company’s projection of a 60% reduction in direct spend on non-priority assets. William Blair believes the company’s late-stage programs remain key growth catalysts in the short and medium term.
Biohaven Ltd. (NYSE:BHVN) reported Q3 2025 results on November 10, 2025. The quarter saw a net loss of $173.4 million, or $1.64 per share, compared to a net loss of $160.3 million in Q3 2024. However, non-GAAP net loss saw improvement, reaching $155.9 million, or $1.47 per share, driven by reductions in non-priority program spending and ongoing cost management. The company faced revenue pressures during the quarter, marked by the partial pause of Vyglxia-related activities and the focus on select pipeline assets.
Biohaven Ltd. (NYSE:BHVN) closed the quarter with $263.8 million in cash balances, even though expenses remained high. The company also reported a decline in R&D expenses, bringing them down from $157.6 million in Q3 2024 to $141.2 million. The focus shifted toward opakalim, TRAP/MoDE degraders, and taldefgrobep alfa. Meanwhile, general and administrative expenses reached $28.2 million, driven by higher share-based compensation and legal expenses.
Biohaven Ltd. (NYSE:BHVN) is focused on discovering, developing, and commercializing therapies across immunology, neuroscience, and oncology.
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