In this article, we will look at the 11 Best Healthcare Penny Stocks to Buy Now.
The US healthcare sector is one of the biggest in the world, with spending expected to reach $5.3 trillion this year. While often seen as a defensive sector that holds up better amid uncertainties, that has not been the case. The sector is down by about 1% for the year, despite the overall equity market rallying to record highs, with a 12% gain year-to-date.
The healthcare sector has generated lackluster results for investors over the past three years. The industry declined by 3.6% in 2022 but gained 0.3% and 0.9% in 2023 and 2024, respectively. The muted returns have continued in 2025, with Healthcare one of four S&P 500 sectors in negative territory.
The underperformance in 2025 is primarily attributed to Trump administration policies. Healthcare companies have had to contend with pressure for lower drug prices, compounded by tariffs targeting pharmaceuticals. Cuts to areas such as health research and Medicaid have exacerbated the situation.
“You have got this constant overarching political and regulatory overhang that doesn’t really seem to subside with any administration,” said Jared Holz, healthcare sector strategist at Mizuho Securities. “When you have so much nebulousness around the sector, it turns people off rather than invites them to the party.”
Amidst the underperformance, the long-term outlook remains positive. That’s because the sector is home to products and services essential to the survival of the human race. Likewise, the underperformance has left most stocks trading at highly discounted valuations.
“Our perspective is a lot of this bad news is priced in and then some,” said Patrick Kaser, portfolio manager at Brandywine Global. “To bet against the sector from here, you’re essentially continuing to bet on the valuation gap, which is already large, continuing to widen.”
With that in mind, let’s take a look at the best healthcare penny stocks to buy now at discounted valuations.
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Our Methodology
To identify the best healthcare penny stocks to buy now, we used Finviz screener to scan for healthcare companies. We focused on healthcare stocks trading for less than $5 (as of September 18) and that were popular among elite hedge funds in the second quarter of 2025. Finally, we ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Best Healthcare Penny Stocks to Buy Now
11. ProKidney Corp (NASDAQ:PROK)
Share Price: $2.68
Number of Hedge Fund Holders: 9
ProKidney Corp (NASDAQ:PROK) is one of the best healthcare penny stocks to buy now. On September 8, at the Morgan Stanley 23rd Annual Global Healthcare Conference, the company reiterated its focus on the promising cell therapy, Reparencel.
The company anticipates top-line results from the cell therapy currently in Phase 3 of the Proactive One study by the second quarter of 2027. Enrollment in the ProAct One study is 50% complete, with the company targeting high-risk patients with chronic kidney disease and a GFR of 30 or less.
ProKidney remains in a solid financial position, with $295 million in cash as of June, which is sufficient to bring the clinical trial to fruition. It has also started strengthening its manufacturing capacity in North Carolina in anticipation of strong demand.
ProKidney Corp (NASDAQ:PROK) is a clinical-stage biotechnology company that develops a first-in-class cell therapy, rilparencel (also known as REACT), for the treatment of Chronic Kidney Disease (CKD). Its proprietary autologous cellular treatment uses a patient’s own kidney cells to potentially preserve kidney function, slow progression, and delay or prevent the need for dialysis.
10. ImmunityBio, Inc. (NASDAQ:IBRX)
Share Price: $2.85
Number of Hedge Fund Holders: 14
ImmunityBio, Inc. (NASDAQ:IBRX) is one of the best healthcare penny stocks to buy now. On September 8, 2025, ImmunityBio Inc. unveiled promising Phase 2 QUILT-3.055 trial results at the IASLC World Conference on Lung Cancer, showing that ANKTIVA significantly reverses lymphopenia in advanced NSCLC patients resistant to checkpoint inhibitors.
This immune restoration translated into prolonged median overall survival (mOS), with patients maintaining higher lymphocyte counts living up to 21.1 months. The therapy is being further evaluated in the Phase 3 ResQ201A trial alongside checkpoint inhibitor tislelizumab.
ANKTIVA, a first-in-class IL-15 agonist fusion complex, activates NK and T cells depleted by standard cancer treatments. It mimics natural IL-15 receptor biology to restore immune memory and overcome tumor resistance. In the trial, 80% of patients exceeded an ALC of 1,200 cells/µL, with mOS of 15.8 months compared to 11.5 months in those who did not. These findings support ANKTIVA’s role as a lymphorestorative therapy, potentially redefining cancer treatment by targeting the immune system itself.
ImmunityBio, Inc. (NASDAQ:IBRX) is a San Diego-based commercial-stage biotech company focused on developing immunotherapies and cell therapies that enhance the body’s natural defenses against cancer and infectious diseases. Its platforms aim to reduce reliance on high-dose chemotherapy and improve treatment accessibility. ANKTIVA, already FDA-approved for bladder cancer, anchors the company’s BioShield platform and represents a breakthrough in immune-driven cancer care.
9. Precigen, Inc. (NASDAQ:PGEN)
Share Price: $4.04
Number of Hedge Fund Holders: 16
Precigen, Inc. (NASDAQ:PGEN) is one of the best healthcare penny stocks to buy now. On September 2, the company entered into a credit facility agreement with investment funds managed by Pharmakon Advisors.
The company will have access to a credit line of up to $125 million, divided into two tranches of $100 million and $25 million. The credit facility is poised to strengthen the company’s balance sheet, leaving it in a solid position to accelerate the commercialization of PAPZIMEOS, a groundbreaking novel immunotherapy.
The financing line will also allow the company to accelerate its efforts in international markets and pursue pediatric and additional HPV-related indications. Robust commercialization will enable the company to generate revenue from PAPZIMEOS and deliver meaningful growth.
“Strengthening our balance sheet provides us with the financial flexibility to commercialize PAPZIMEOS while advancing our broader strategic objectives as Precigen enters a period of projected significant growth,” said Harry Thomasian, Jr., Chief Financial Officer of Precigen.
Precigen, Inc. (NASDAQ:PGEN) is a biopharmaceutical company that focuses on developing gene and cell therapies for diseases that are difficult to treat, including those in areas such as immuno-oncology, autoimmune disorders, and infectious diseases.
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