11 Cheap Biotech Stocks to Buy According to Hedge Funds

7. Royalty Pharma plc (NASDAQ:RPRX)

Number of Hedge Fund Holders: 30 

Royalty Pharma plc (NASDAQ:RPRX) is a leading biopharmaceutical royalty company that invests in and acquires royalty interests in innovative drug products, partnering with biotech firms, pharmaceutical companies, and research institutions. The company funds late-stage clinical trials and new product launches in exchange for future royalty revenues.

In August 2025, the business reported strong Q2 results, with Portfolio Receipts rising 20% to $727 million and Royalty Receipts up 11%, driven by products such as Voranigo, Trelegy, Evrysdi, and Tremfya. Full-year 2025 guidance for Portfolio Receipts was raised to $3.05–$3.15 billion, reflecting expected growth of 9%–12%.

A key milestone was the May 2025 acquisition of its external manager, RP Management, LLC, creating an integrated public company that streamlines operations and combines its royalty portfolio with intellectual capital. For investors exploring growth opportunities in healthcare, particularly beyond cheap biotech stocks to buy, Royalty Pharma plc (NASDAQ:RPRX) stands out by offering exposure to a diversified royalty portfolio rather than relying on individual drug developers. The company also acquired a royalty interest in Amgen’s Imdelltra, a DLL3-targeting bispecific T-cell engager for small cell lung cancer, for $885 million upfront, with options for additional royalties up to $65 million, expanding its oncology portfolio.

Royalty Pharma plc (NASDAQ:RPRX) entered a $2 billion funding partnership with Revolution Medicines for the development of daraxonrasib, a Phase 3 cancer therapy, including a synthetic royalty of up to $1.25 billion while allowing the partner to retain control over pipeline development. Positive clinical updates from partners, including Phase 3 results for Gilead’s Trodelvy in metastatic triple-negative breast cancer, continue to enhance the value and growth potential of the corporation’s royalty assets.