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.
8. Sana Biotechnology Inc. (NASDAQ:SANA)
Share Price: $3.32
Number of Hedge Fund Holders: 16
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the best healthcare penny stocks to buy now. On September 5, the company confirmed the retirement of Executive Vice President Bernard J. Cassidy, effective October 20, 2025.
Mr. Cassidy is stepping down for personal reasons, and his retirement is not a result of any disagreement with the company regarding its policies, practices, or operations. Upon retiring, he is to provide transition-related service. The biotechnology company has already entered into an offer letter with Aaron M. Grossman, who is to take over as the executive vice president and chief legal officer.
Grossman joins as the company is making significant strides in the development of treatment for type 1 diabetes and other immune diseases. Its development practice is centered on the Hypoimmune (HIP) platform, which seeks to revolutionize the transplantation of engineered cells without triggering an immune response.
Sana Biotechnology, Inc. (NASDAQ:SANA) is a biotechnology company focused on utilizing engineered cells as medicines for patients. Its ability to modify genes and use cells as medicines will be one of the most important advances in healthcare over the next several decades.
7. Atai Life Sciences N.V. (NASDAQ:ATAI)
Share Price: $4.94
Number of Hedge Fund Holders: 17
Atai Life Sciences N.V. (NASDAQ:ATAI) is one of the best healthcare penny stocks to buy now. On September 15, H.C. Wainwright reiterated a ‘Buy’ rating on the stock and a $15 price target. The positive stance follows a meeting between the research firm and the company’s CEO, Srinivas Rao, at the 27th Annual Global Investment Conference.
The CEO reiterated the company’s leading position in the psychedelics segment, backed by positive clinical data and the scalability of the programs in the pipeline. Management is especially bullish about the BPL-003 (intranasal mebufotenin, also known as 5-MeO-DMT) program, which is seen as a lead value driver within the interventional psychiatry framework.
Growing interest in psychedelics for psychiatric applications positions Atai Life Sciences for long-term growth. AbbVie’s $1.2 billion deal to acquire Gilgamesh Pharmaceuticals’ bretisilocin underscores the growing interest in psychedelic treatments.
Atai Life Sciences N.V. (NASDAQ: ATAI) is a clinical-stage biopharmaceutical company on a mission to develop highly effective mental health treatments that transform patient care. It is developing psychedelics, other hallucinogens, entactogens, and related drugs for the treatment of psychiatric conditions.
6. Clover Health Investments Corp (NASDAQ:CLOV)
Share Price: $3.08
Number of Hedge Fund Holders: 17
Clover Health Investments Corp (NASDAQ:CLOV) is one of the best healthcare penny stocks to buy now. On September 16, the company announced the launch of a new portal, Availity Essentials. The new portal is designed to enhance operational efficiency across administrative functions for healthcare providers.
Availity Essential features a highly secure interface that enables providers to manage core administrative tasks across multiple healthcare plans. The streamlined access ensures providers spend more time with patients rather than navigating systems. The system is also designed to provide efficient workflows, thereby reducing delays in patient care.
“This new portal is one of several steps we’re taking to ease administrative burden, accelerate decision-making, and deliver on our commitment to a more efficient provider experience, empowering them to focus on what they do best: delivering high quality care to their patients, faster,” said Jamie Reynoso, CEO of Medicare Advantage at Clover Health.
Availity Essentials highlights how health plans and providers can collaborate to minimize friction and deliver tangible value. It also underscores the company’s commitment to empowering stakeholders to make informed decisions.
Clover Health Investments Corp (NASDAQ:CLOV) is a company that offers health insurance plans and utilizes an AI-powered technology platform to support physicians and enhance healthcare quality for Medicare beneficiaries. It provides Medicare Advantage plans that bundle services such as dental, vision, and telehealth, while also providing proprietary Clover Assistant software to clinicians.
5. AbCellera Biologics Inc. (NASDAQ:ABCL)
Share Price: $4.76
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the best healthcare penny stocks to buy now. On September 10, the company confirmed the appointment of Sarah Noonberg, M.D., Ph.D., as its Chief Medical Officer.
She joins the company with over 20 years of industry experience, having led various development programs from discovery through regulatory approvals and commercialization. A board-certified physician-scientist, Dr. Noonberg is an excellent addition to the company, given her experience in different therapeutic areas, including oncology, neuroscience, rare diseases, gene therapy, and cell therapy.
“With more than 20 years of experience in clinical development, Sarah brings deep expertise and proven operational and leadership strength that will be invaluable as we continue to build and advance our clinical pipeline,” said Carl Hansen, Ph.D., founder and CEO of AbCellera.
AbCellera Biologics Inc. (NASDAQ:ABCL) is a biotechnology company that uses a proprietary technology platform to discover and develop antibody-based medicines for various diseases, including cancer, autoimmune disorders, and infectious diseases. It partners with other drug developers to identify the most effective antibodies, leveraging its integrated technology, data science, and interdisciplinary teams to accelerate the drug development process.
4. Savara Inc. (NASDAQ:SVRA)
Share Price: $3.07
Number of Hedge Fund Holders: 18
Savara Inc. (NASDAQ:SVRA) is one of the best healthcare penny stocks to buy now. On September 9, Guggenheim raised its price target of the stock to $11 from $8 while reiterating a Buy rating. The price target hike follows an impressive 16% stock rally year to date.
The research firm raised its price target, buoyed by positive developments that affirm long-term prospects. For starters, the company has achieved alignment with the Food and Drug Administration on a Biologics License Application. The company remains on track for a BLA resubmission, with potential FDA approval by mid-next year.
In addition, Savara has confirmed it is switching its primary drug manufacturer from GEMA to Fujifilm Diosynth Biotechnologies. The switch is significant given Fujifilm’s impressive FDA track record. Fujifilm is a perfect fit following new claims suggesting that approximately 50% more patients in the US have autoimmune pulmonary alveolar proteinosis (aPAP).
Savara Inc. (NASDAQ:SVRA) is a clinical-stage biopharmaceutical company focused on developing and commercializing therapies for rare respiratory diseases, such as its lead candidate, molgramostim, an inhaled GM-CSF for autoimmune pulmonary alveolar proteinosis (aPAP).
3. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Share Price: $2.32
Number of Hedge Fund Holders: 25
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the best healthcare penny stocks to buy now. On September 9, at the H.C. Wainwright 27th Annual Global Investment Conference, the company reiterated its growth and cost-cutting initiatives.
Part of the plan involves the commercial expansion of Amtagvi (lifileucel) for advanced melanoma, as the company seeks to strengthen its revenue base. The company plans to expand the drug’s indication to cover non-small cell lung cancer and endometrial cancer, aiming for $1 billion in sales. The push has already received a boost following a positive Phase 3 study for melanoma showing a 65% response rate.
Iovance is also eyeing operational efficiency as it seeks to reduce costs. The company plans to reduce its operating costs by over $100 million in the next four quarters. It’s also eyeing higher manufacturing volume and operational efficiencies to drive margins.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) develops individualized T-cell therapies to treat solid tumor cancers by harnessing the patient’s immune system. The company’s focus is on Tumor-Infiltrating Lymphocyte (TIL) therapy, a personalized cell therapy in which T-cells are extracted from a patient’s tumor, expanded, and reinfused to fight the cancer.
2. Taysha Gene Therapies Inc. (NASDAQ:TSHA)
Share Price: $2.92
Number of Hedge Fund Holders: 34
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is one of the best healthcare penny stocks to buy now. On September 12, analysts at JMP Securities reiterated a ‘Market Perform’ rating on the stock and a $6 price target.
The positive stance follows the stock’s impressive 56% year-to-date gain. It also follows solid second-quarter results, whereby revenue totaled $1.98 million, exceeding analysts’ estimates of $1.82 million.
The stock’s sentiments have also received a significant boost from the development of TSHA-102 for Rett Syndrome. The gene therapy edge stems from its ability to provide consistent distribution across the brain while leveraging the AAV9 vector.
The treatment has already been administered to 12 patients, with no serious adverse events reported. The company plans to begin patient enrollment in the fourth quarter, meeting key FDA requirements.
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes gene therapies for severe monogenic diseases of the central nervous system (CNS). These therapies utilize adeno-associated virus (AAV) vectors to target diseases resulting from a single genetic mutation.
1. Nuvation Bio Inc. (NYSE:NUVB)
Share Price: $3.36
Number of Hedge Fund Holders: 36
Nuvation Bio Inc. (NYSE: NUVB) is one of the best healthcare penny stocks to buy now. On September 7, the company delivered new and positive updated results from pivotal Phase 2 TRUST-1 and TRUST-II studies evaluating IBTROZI (taletrectinib) in non-small cell lung cancer (NSCLC).
The updated findings show notable progression-free survival results, affirming responses with IBTROZI remain durable. The results support the recent approval of the drug in the US, adding a new option for patients with non-small cell lung cancer.
“These long-term data emphasize impressive PFS and durability of response, with a tolerable and manageable safety profile that helps patients stay on therapy so they can continue to benefit. We remain excited about the promise of IBTROZI and look forward to further data generation from continued follow-up in the TRUST studies,” said David Hung, M.D., Founder, President, and Chief Executive Officer of Nuvation Bio.
Nuvation Bio Inc. (NYSE:NUVB) is a global biopharmaceutical company focused on developing novel, differentiated therapies to address significant unmet needs in oncology, with a focus on difficult-to-treat cancers. Their pipeline includes candidates for ROS1+ non-small cell lung cancer (taletrectinib), IDH1-mutant glioma (safusidenib), and other advanced solid tumors (NUV-1511 and NUV-868).
While we acknowledge the potential of Nuvation Bio Inc. (NYSE:NUVB) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NUVB and that has 100x upside potential, check out our report about the cheapest AI stock.
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