11 Cheap Biotech Stocks to Buy According to Hedge Funds

3. Halozyme Therapeutics, Inc. (NASDAQ:HALO)

Number of Hedge Fund Holders: 40 

Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical company specializing in novel drug delivery technologies, primarily its ENHANZE platform, which enhances the efficacy of injectable therapies and generates significant royalty revenue from partnered products.

In Q2 2025, Halozyme Therapeutics, Inc. (NASDAQ:HALO) reported total revenue of $326 million, up 41% year-over-year, driven by a 65% increase in royalties from therapies including DARZALEX SC, Phesgo, and VYVGART Hytrulo. The corporation raised its 2025 revenue guidance to 26–33% growth, reflecting strong global demand for its platform. Recent regulatory milestones, such as approvals for RYBREVANT SC in Europe and new indications for VYVGART Hytrulo, further expand market reach and underscore the value of ENHANZE technology.

For investors looking beyond the big names in the sector, Halozyme Therapeutics, Inc. (NASDAQ:HALO) is often mentioned in discussions of cheap biotech stocks to buy, given its strong royalty base and consistent growth trajectory. The company is also pursuing legal protection of its intellectual property, filing a patent infringement lawsuit against Merck Sharp & Dohme in April 2025 over Keytruda SC. The business completed $303 million in share repurchases in Q2 under a $750 million program, signaling confidence in its growth trajectory.

Analyst sentiment remains positive, with Morgan Stanley upgrading Halozyme to “Overweight” and raising the price target to $80, citing durable royalty streams, expanding geographic and indication reach, and favorable U.S. legislative developments. Strong earnings beats and robust royalty growth have supported the stock reaching all-time highs in mid-2025.