In this article, we will look at the 10 Biotech Stocks Screaming a Buy.
The biotech sector has underperformed the overall market. Those are sentiments echoed by JPMorgan analyst Chris Schott, given the 10% year-to-date loss by the SPDR S&P Biotech ETF. Nevertheless, the analysts view the underperformance for a third straight year as an opportunity for investors.
While most of the underperformance in the year can be attributed to President Donald Trump’s tariffs, Schott insists it is overdone. The analysts expect any impact from policy change to be manageable as valuations in the sector are historically low, meaning the worst possible outcome is already priced in.
“The sector [should be] able to largely mitigate the impact of tariffs in the mid/long term through manufacturing repatriation and 2) [there’s] no clear path for MFN [“most favored nation”] to move forward without Congressional approval (outside of IRA price negotiations),” Schott said.
According to Schott, fundamentals for stocks in the sector have improved in recent years, which should support “a more manageable sales/EPS erosion outlook for most names.
With that in mind, let’s take a look at 10 Biotech Stocks Screaming a Buy.
Our Methodology
To make the list of 10 Biotech Stocks Screaming a Buy, we scanned the US equity markets, focusing on Biotech stocks outperforming the market. We focused on stocks with significant year-to-date gains and popularity among elite hedge funds. Finally, we ranked the stocks in ascending order based on their year-to-date gain.
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).
Biotech Stocks Screaming a Buy
10. Incyte Corporation (NASDAQ:INCY)
Year to Date Gain as of June 18: 1.87%
Number of Hedge Fund Holders as of Q1: 37
Incyte Corporation (NASDAQ:INCY) is one of the 10 biotech stocks screaming a buy. On June 17, Incyte was a big mover in the market, announcing the signing of a strategic partnership with Netherlands QIAGEN N.V. QGEN. The two are coming together to enhance the development of a novel diagnostic panel to support investigational treatments for myeloproliferative neoplasms (MPNs).
The strategic partnership covers the development of Incyte’s investigational monoclonal antibody targeting mutant calreticulin (mutCALR), currently under development for myelofibrosis (MF) and essential thrombocythemia (ET). The deal is also expected to benefit Incyte in advancing its precision medicine efforts in MPNs.
Under the terms of the agreement, QIAGEN is to develop a multimodal panel using next-generation sequencing (NGS) technology. The panel aims to identify key gene alterations in MPNs. The panel will also be validated on the Illumina NextSeq 550Dx platform for use with whole blood samples.
Incyte Corporation (NASDAQ:INCY) is a global biopharmaceutical company that focuses on discovering, developing, and commercializing proprietary therapeutics for patients with unmet medical needs. It develops drugs for rare and hard-to-treat diseases, including those in oncology and inflammation/autoimmunity.
9. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)
Year to Date Gain as of June 18: 7.06%
Number of Hedge Fund Holders as of Q1: 43
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is one of the 10 biotech stocks screaming a buy. On June 12, the company announced the upcoming retirement of Richard Geary, Ph.D., its executive vice president and chief development officer, effective January 2026. Holly Kordasiewicz, Ph.D., currently senior vice president of neurology, will take over the role. Geary has been with Ionis since 1995 and played a pivotal role in bringing six medicines to regulatory approval, including the company’s first independently commercialized drug, TRYNGOLZA.
Dr. Kordasiewicz, who joined Ionis in 2011, brings over 20 years of experience in R&D, particularly in neurology. She leads the company’s neurology program, covering treatments for conditions such as Alzheimer’s disease, Angelman syndrome, and Alexander disease. Her work has also contributed to key partnered programs with Biogen, including the development of QALSODY® and IONIS-MAPTRx.
As Dr. Geary transitions out of his role, he will continue as a strategic consultant through 2026 to ensure continuity. Ionis leadership praised both Geary’s legacy and Kordasiewicz’s appointment as a pivotal step in driving the company’s commitment to developing transformational therapies for patients with serious diseases.
Ionis Pharmaceuticals, Inc. is a U.S.-based commercial-stage biotech company specializing in RNA-targeted therapies. Its approved products include TRYNGOLZA for FCS, WAINUA, and TEGSEDI for ATTRv-PN, SPINRAZA for spinal muscular atrophy, QALSODY for ALS, and WAYLIVRA for rare lipid disorders. The company has a robust pipeline, including late-stage programs like Olezarsen (for hypertriglyceridemia), Donidalorsen (for hereditary angioedema), and Zilganerse (for Alexander disease), along with several mid-stage treatments for neurological and metabolic conditions. Ionis also collaborates with leading pharma firms, including Biogen, GSK, AstraZeneca, Novartis, Roche, and Metagenomi, expanding its reach in developing transformative RNA therapies.
8. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Year to Date Gain as of June 18: 8.92%
Number of Hedge Fund Holders as of Q1: 60
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) is one of the 10 biotech stocks screaming a buy. On June 17, RBC Capital reiterated a Sector Perform rating on the stock but cut the price target to $420 from $423. The adjustment is in response to the company confirming gradual patient conversion from Trikafta to the company’s next-generation cystic fibrosis treatment, Alyftrek.
RBC Capital remains concerned about the gradual conversion compared to consensus expectations. Consequently, it has warned it could affect the company’s operating margins by up to 2%. Nevertheless, the research firm insists that the company’s cystic fibrosis franchise remains well-insulated from sector headwinds.
However, RBC Capital has reiterated that Vertex could require stronger execution to adopt Alyftrek to justify the current valuation in the market. Consequently, its reduced price target reflects lower year Alyftrek conversion rates.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that develops and commercializes therapies for serious diseases. They are known for their work in cystic fibrosis (CF) and are expanding into other areas like cell and genetic therapies.
7. PTC Therapeutics, Inc. (NASDAQ:PTCT)
Year to Date Gain as of June 18: 10.83%
Number of Hedge Fund Holders as of Q1: 38
PTC Therapeutics, Inc. (NASDAQ:PTCT) is one of the 10 biotech stocks screaming a buy. On June 17, analysts at Truist Securities initiated coverage of the stock with a ‘Buy’ rating and an $80 price target. The research firm remains bullish about the company’s prospects ahead of the launch of two key drugs.
The research firm expects the two new drugs to act as catalysts for the biopharmaceutical company. The two drugs are sapropterin for phenylketonuria (PKU) and vatiquinone for Friedreich’s ataxia (FA). The two drugs are slated for release in July and August, respectively.
Truist Securities expects the two drugs to generate more than $2 billion in peak sales, which makes it believe the stock is undervalued at current levels. In addition to the two drugs, the research firm has echoed PTC Therapeutics’ promising pipeline, especially PTC518, for Huntington’s disease.
Consequently, Truist Securities expects the launch of two new drugs and the development of the pipeline to help offset concerns related to Translarna’s (ataluren) performance in Duchenne muscular dystrophy (DMD).
PTC Therapeutics, Inc. (NASDAQ:PTCT) is a global biopharmaceutical company focused on developing and commercializing therapies for rare diseases. It discovers and develops treatments that benefit patients with unmet medical needs, particularly in para-genetic disorders.
6. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
Year to Date Gain as of June 18: 22.19%
Number of Hedge Fund Holders as of Q1: 35
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is one of the 10 biotech stocks screaming a buy. On June 17, the company moved to attract and retain top talent by granting inducement awards to 41 employees. Under the 2024 Inducement Plan, the company will award the employees non-qualified stock options of 187,664 shares and 89.582 restricted stock units designed to attract and retain talent.
The move to offer inducement awards is part of Acadia Pharmaceuticals’ push to secure top-skilled professionals essential for its neuroscience projects. It expects the awards to ensure employees are incentivized to contribute to the long-term objectives expected to lead to sustained growth and innovation.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system (CNS) disorders and rare diseases. It works on Parkinson’s disease psychosis and Rett syndrome treatment, with marketed products like NUPLAZID (pimavanserin) and DAYBUE.
5. Protagonist Therapeutics, Inc. (NASDAQ:PTGX)
Year to Date Gain as of June 18: 41.64%
Number of Hedge Fund Holders as of Q1: 40
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is one of the 10 biotech stocks screaming a buy. On June 17, Citi initiated coverage of the stock with a ‘Buy’ rating and a $72 price target. The research firm remains bullish about the company’s prospects owing to the strong potential of its drug candidates.
The company’s partnership with Takeda on Rusfertide to treat polycythemia Vera (PV) and oral IL-23 (icotrokinra) is one of the developments that underscore the research firm’s favorable rating. Rusfertide demonstrated strong potential in PV patients in phase 3 trials, affirming its potential to address unmet needs.
Citi is especially bullish about adding Rusfertide to existing therapies to expand its use case. In addition, the firm echoed the company’s strategic partnership with Johnson & Johnson for multiple inflammation indications.
According to Citi, Protagonist Therapeutics shares have outperformed over the past three months, going up by a 40% gain compared to a 2% gain of the S&P 500. It expects the company’s combined revenues to climb to $700 million by 2032, above consensus estimates of $680 million.
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is a biopharmaceutical company that develops peptide-based drugs to treat various diseases, including rare and prevalent ones. Its pipeline includes treatments for blood disorders like polycythemia Vera and inflammatory conditions like ulcerative colitis and psoriasis.
4. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Year to Date Gain as of June 18: 42.09%
Number of Hedge Fund Holders as of Q1: 59
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is one of the 10 biotech stocks screaming a buy. On June 17, Wolfe Research initiated coverage of the stock with an ‘Outperform’ rating and a $49 price target. The research firm reiterated the company’s solid position amid the “TTR craze” while also echoing its commercial execution strategy.
Consequently, Wolfe Research expects BridegBio’s revenue to total $569 million in 2025 before rising to $3.4 billion by 2028. It should peak at $4.4 billion in 2034. For the upcoming second quarter, the research firm expects the company to deliver revenue of $106 million, slightly below market expectation of $111 million.
While the stock has shown a remarkable return of 42% year to date, Wolfe Research insists it must navigate several challenges to maintain the positive momentum. It must navigate the potential Vyndaqel loss of exclusivity, achondroplasia data versus competition, and pipeline products. In addition, consistent revenue growth and expanding operating margins will be crucial to the company’s long-term success.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a biopharmaceutical company that develops and delivers transformative medicines for genetic diseases. Its pipeline includes a range of development programs, from early science to advanced clinical trials.
3. Zai Lab Limited (NASDAQ:ZLAB)
Year to Date Gain as of June 18: 50.02%
Number of Hedge Fund Holders as of Q1: 26
Zai Lab Limited (NASDAQ:ZLAB) is one of the 10 biotech stocks screaming a buy. On June 17, the company delivered positive trial results from a preclinical study of ZL-1503, a promising IL-13/IL-31R bispecific antibody.
In the study, the IL-13/IL-31R bispecific antibody demonstrated the ability to suppress the inflammatory and pruritogenic (itch-causing) pathways in atopic dermatitis (AD). The trial results underscore the potential of ZL-1503 to act as a novel treatment option for moderate-to-severe AD.
Some key findings include a single dose of ZL-1503 (10 mg/kg, iv) completely inhibiting IL-13-mediated pSTAT6 and IL-31-induced scratching for at least 76 days. In addition, two out of three subjects exhibited prolonged IL-13-mediated pSTAT6 inhibition over 118 days. Following the positive preclinical study, Zai Lab plans to file an IND for ZL-1503 for moderate-to-severe atopic dermatitis by the end of the year.
Zai Lab Limited (NASDAQ:ZLAB) is a commercial-stage biopharmaceutical company focused on discovering, developing, and commercializing innovative products that address medical conditions with significant unmet needs in oncology, immunology, neuroscience, and infectious disease.
2. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Year to Date Gain as of June 18: 69.77%
Number of Hedge Fund Holders as of Q1: 58
Soleno Therapeutics Inc. (NASDAQ:SLNO) is one of the 10 biotech stocks screaming a buy now. On June 17, Piper Sandler reiterated an ‘Overweight’ rating on the stock with a $145 price target. The bullish stance follows positive discussions with a European specialist on the company’s VYKAT XR medication for Prader-Willi syndrome (PWS).
Piper Sandler consulted a UK-based pediatric endocrinologist to understand the drug better. The specialist indicated she would prescribe the drug as medication for Prader-Willi syndrome (PWS) to all eligible patients upon approval.
Soleno Therapeutics’ edge with the drug stems from the fact that other PWS treatments are in the early stages of development. Piper Sandler believes VYKAT XT represents significant potential as the first approved treatment specifically addressing PWS, a condition.
The biotech company plans to file a Marketing Authorization Application for VYKAT XR in the second quarter. It’s also pursuing regulatory approval in Europe as it plans to fill with the European Medicines agency. Following regulatory approvals, Soleno Therapeutics Palms will launch the drug in the first quarter of 2026.
Soleno Therapeutics is a biopharmaceutical company that develops and commercializes novel treatments for rare diseases. Their lead product, diazoxide choline extended-release tablets (DCCR), is being developed for Prader-Willi syndrome (PWS), specifically to address hyperphagia (excessive hunger).
1. Verona Pharma plc (NASDAQ:VRNA)
Year to Date Gain as of June 18: 92.80%
Number of Hedge Fund Holders as of Q1: 51
Verona Pharma plc (NASDAQ:VRNA) is one of the 10 biotech stocks screaming a buy. On June 17, Roth Capital increased its price target to $116 from $92 while reiterating a Buy rating. The adjustment follows remarks by Dr Frank Sciurba, who discussed unmet chronic obstructive pulmonary disease needs.
The doctor shared positive insights on the company’s product Ohtuvayre, highlighting its complementary role in newly approved biologics. According to Roth Capital, the enhanced understanding of Verona Pharma’s Ohtuvayre’s distinctive efficacy and risk profile is already sparking greater interest among investors.
Consequently, the research firm raised its price target in response to the increased attention and appreciation of Verona Pharma’s offering. The research firm remains bullish about the company’s growth potential.
Verona Pharma is a biopharmaceutical company focused on developing and commercializing innovative therapies for respiratory diseases. It focuses on developing treatments for chronic obstructive pulmonary disease (COPD). They are known for their product, ensifentrine, an investigational, inhaled, small molecule that acts as a dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4), combining bronchodilator and anti-inflammatory properties.
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