In this article, we will look at the top 12 Affordable Biotech Stocks to Invest In Now.
On September 4, Mizuho healthcare strategist Jared Holz appeared on CNBC’s ‘Power Lunch’ to talk about the changing sentiment in the healthcare sector, the differences in the biotech ETFs, and more.
Discussing the change in sentiment, he noted that the fact that the index stopped going down every day is the first point to consider. So much damage has been done to the XBI and biotech in general over the past few years according to him, and the fact that it started to move higher and not consistently down on a daily basis was the biggest difference for him.
READ ALSO: 12 Best Drug Stocks to Buy Right Now and 13 High Growth International Stocks to Buy Right Now.
Holz believes that every single stock in this index is “basically mutually exclusive of everything else,” which makes it “super tough” to make a call on the index. Having a directional call on biotech, according to him, has been considerably hard because each name is unique.
He added that we are finally at the point where the selling has stopped, and some of the stories are better appreciated.
With these trends in view, let’s look at the top affordable biotech stocks to invest in now.
Our Methodology
We used stock screeners to make a list of biotech stocks with a forward P/E below 20 and selected the top 12 with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on September 15.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating 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).
12 Affordable Biotech Stocks to Invest In Now
12. Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL)
Forward P/E: 7.73
Number of Hedge Fund Holders: 12
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is one of the best affordable biotech stocks to invest in now. Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) reported its fiscal Q2 2025 results on August 5, with total revenue for the quarter reaching approximately $101.7 million.
This included net product sales of $58.9 million and contract revenues from collaborations of $42.7 million. The company also generated $59.6 million in net income.
Following the results, Jefferies analyst Eun Yang maintained a Hold rating on Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) on August 6, setting a price target of $23.00.
However, the same day, H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) and set a $57.00 price target.
In another report released the same day, Citi also maintained a Buy rating on Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) and set a $67.00 price target.
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is a clinical-stage biotechnology company that discovers and develops targeted, novel drugs in oncology, immunology, and immune oncology. Its product portfolio includes Tavalisse, Fostamatinib, and R835.
11. Puma Biotechnology, Inc. (NASDAQ:PBYI)
Forward P/E: 6.39
Number of Hedge Fund Holders: 14
Puma Biotechnology, Inc. (NASDAQ:PBYI) is one of the best affordable biotech stocks to invest in now. Puma Biotechnology, Inc. (NASDAQ:PBYI) reported its fiscal Q2 2025 results on August 7, with product revenue net for the quarter coming up to $49.2 million, up from $44.4 million in fiscal Q2 2024.
The product revenue net consisted solely of revenue from sales of NERLYNX, which is Puma Biotechnology, Inc.’s (NASDAQ:PBYI) first commercial product. Product revenue net in the first six months of 2025 was $92.3 million, up from $84.6 million in the same time period in 2024.
TD Cowen analyst Marc Frahm maintained a Hold rating on Puma Biotechnology, Inc. (NASDAQ:PBYI) on August 7 and set a price target of $4.00.
Furthermore, Gena Wang from Barclays maintained a Sell rating on Puma Biotechnology, Inc. (NASDAQ:PBYI) on August 8 and set a price target of $2.00.
Puma Biotechnology, Inc. (NASDAQ:PBYI) is a biopharmaceutical company involved in the acquisition and development of innovative products to treat different kinds of cancers.
The company’s focus is on the in-licensing drug candidates that are either in the process of or have already obtained initial clinical testing to treat cancer. It then endeavors to develop these drug candidates further for commercial use.
