11 Cheap Biotech Stocks to Buy According to Hedge Funds

6. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)

Number of Hedge Fund Holders: 32 

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is a commercial-stage biopharmaceutical company specializing in treatments for rare and difficult-to-treat diseases. Its key products include FIRDAPSE (amifampridine), Fycompa, Ruzurgi, and AGAMREE, targeting neurological and rare disorders.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)’s most significant recent development is the settlement of patent litigation with Lupin Ltd and Lupin Pharmaceuticals over FIRDAPSE 10 mg tablets. Announced in August 2025, the agreement delays Lupin’s ability to market a generic version in the U.S. until February 25, 2035, pending FDA approval, while terminating the specific litigation between Catalyst and Lupin. This settlement safeguards the business’s market exclusivity and revenue for nearly another decade, although patent disputes with other generics, like Hetero, remain ongoing.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) also reported a 19.4% year-over-year revenue increase in Q2 2025, reflecting expanding market reach and continued commercial momentum. The corporation maintains strategic collaborations and is recognized for its innovative rare disease pipeline, reinforcing its appeal to investors seeking growth in specialty biopharma.