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.
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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.
10. Zevra Therapeutics, Inc. (NASDAQ:ZVRA)
Forward P/E: 6.35
Number of Hedge Fund Holders: 16
Zevra Therapeutics, Inc. (NASDAQ:ZVRA) is one of the best affordable biotech stocks to invest in now. On September 4, Zevra Therapeutics, Inc. (NASDAQ:ZVRA) announced positive new data supporting the foundational role of MIPLYFFA® (arimoclomol) for the treatment of Niemann-Pick Disease Type C at the International Congress of Inborn Errors of Metabolism (ICIEM).
The new data from pre-specified analysis showed that “patients on concomitant miglustat who switched from placebo to MIPLYFFA experienced a decline in annual disease progression”.
Zevra Therapeutics, Inc. (NASDAQ:ZVRA) is a commercial-stage company that develops therapies for rare diseases with limited or no treatment options. Its product portfolio focuses on rare neurological and sleep conditions, including Idiopathic Hypersomnia, Urea Cycle Disorders, and Niemann-Pick disease type C.
9. Genmab A/S (NASDAQ:GMAB)
Forward P/E: 16
Number of Hedge Fund Holders: 19
Genmab A/S (NASDAQ:GMAB) is one of the best affordable biotech stocks to invest in now. In a report released on September 8, Justin Smith from Bernstein reiterated a Sell rating on Genmab A/S (NASDAQ:GMAB) without assigning a price target.
In its financial performance release for the first half of 2025, Genmab A/S (NASDAQ:GMAB) reported $1.640 billion in revenue for the first six months of 2025 compared to $1.382 billion for the same period last year.
Management attributed the increase of $258 million, or 19%, to higher DARZALEX® and Kesimpta® royalties attained under the company’s collaborations with Johnson & Johnson and Novartis Pharma, respectively, along with higher net product sales for EPKINLY.
Genmab A/S (NASDAQ:GMAB) is an international biotechnology company that develops human antibody therapeutics for the treatment of cancer and other diseases.
Its product pipeline includes DARZALEX to treat certain indications of multiple myeloma, TEPEZZA for the treatment of thyroid eye disease, and Arzerra to treat certain indications of chronic lymphocytic leukemia.
8. Innoviva, Inc. (NASDAQ:INVA)
Forward P/E: 10.76
Number of Hedge Fund Holders: 26
Innoviva, Inc. (NASDAQ:INVA) is one of the best affordable biotech stocks to invest in now. On August 11, H.C. Wainwright analyst Raghuram Selvaraju raised the firm’s price target on Innoviva, Inc. (NASDAQ:INVA) to $45 from $40 while keeping a Buy rating on the shares.
The same day, Oppenheimer initiated coverage of Innoviva, Inc. (NASDAQ:INVA) with an Outperform rating and $35 price target.
The firm told investors that it considers Innoviva, Inc.’s (NASDAQ:INVA) specialty therapeutics and royalty commercial results to be significant factors that can drive share outperformance.
Innoviva, Inc. (NASDAQ:INVA) is involved in the development, commercialization, and financial management of biopharmaceuticals.
7. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)
Forward P/E: 8.18
Number of Hedge Fund Holders: 27
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is one of the best affordable biotech stocks to invest in now. On September 12, UBS analyst Ashwani Verma maintained a Buy rating on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) and set a price target of $50.00.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) reported its fiscal Q2 2025 results on August 5, with its WAKIX franchise continually delivering strong growth with net revenue of $200.5 million for the quarter, up 16% year-over-year.
The company also announced the initiation of next-generation Pitolisant HD Phase 3 registration trials in Narcolepsy & Idiopathic Hypersomnia in Q4 2025, with both indications targeted for PDUFA in 2028.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage pharmaceutical company that develops and commercializes therapies to treat neurological disorders.
Its product, WAKIX, is a molecule that increases histamine signaling in the brain by binding to H3 receptors. The company has one of the strongest pipelines for people with rare neurological diseases.
6. CorMedix Inc. (NASDAQ:CRMD)
Forward P/E: 7.74
Number of Hedge Fund Holders: 29
CorMedix Inc. (NASDAQ:CRMD) is one of the best affordable biotech stocks to invest in now. On September 9, Citizens JMP analyst Jason Butler reiterated a Buy rating on CorMedix Inc. (NASDAQ:CRMD) and set a price target of $22.00.
In other news, CorMedix Inc. (NASDAQ:CRMD) announced on September 2 the successful completion of its previously announced acquisition of Melinta Therapeutics LLC. Melinta Therapeutics LLC is a private commercial-stage company that provides innovative therapies for acute and life-threatening illnesses.
Management called the deal “transformational” for the company, expanding and diversifying its commercial product portfolio with “seven innovative drug products and a pipeline expansion indication with near–term revenue growth potential”.
CorMedix Inc. (NASDAQ:CRMD) is a medical device and biopharmaceutical company that develops and commercializes therapeutics to treat and prevent diseases and medical conditions.
5. Royalty Pharma Plc (NASDAQ:RPRX)
Forward P/E: 8.12
Number of Hedge Fund Holders: 30
Royalty Pharma Plc (NASDAQ:RPRX) is one of the best affordable biotech stocks to invest in now. On September 12, TD Cowen analyst Michael Nedelcovych maintained a Buy rating on Royalty Pharma Plc (NASDAQ:RPRX), keeping the price target at $42.00.
The analyst based the optimistic rating on the company’s promising outlook and strong performance, stating that it consistently surpassed key metrics and is set to meet or exceed its ambitious revenue target of $4.7 billion by 2030.
Nedelcovych added that Royalty Pharma Plc’s (NASDAQ:RPRX) thriving biopharma ecosystem lends it a strategic position as it increasingly relies on royalty financing.
Royalty Pharma Plc (NASDAQ:RPRX) is a funder of innovation in the biopharmaceutical industry and a buyer of biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies.
The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators.
Royalty Pharma Plc’s (NASDAQ:RPRX) portfolio includes royalties in over 35 commercial products, including Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Novartis’ Promacta, Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and others.
4. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Forward P/E: 12.70
Number of Hedge Fund Holders: 40
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the best affordable biotech stocks to invest in now. On August 18, Morgan Stanley raised the firm’s price target on Halozyme Therapeutics, Inc. (NASDAQ:HALO) to $80 from $75, keeping an Overweight rating on the shares.
The firm told investors in a research note that the EPS 2025 guidance for Halozyme Therapeutics, Inc. (NASDAQ:HALO) has increased by 20% since January, fueled by its cost discipline and partnered products.
The analyst thus adjusted the firm’s earnings outlook to take into account the raised 2025 base and its implications for future long-term earnings guidance.
However, Goldman Sachs analyst Corinne Johnson maintained a Hold rating on Halozyme Therapeutics, Inc. (NASDAQ:HALO) on August 12, setting a price target of $56.00.
In addition to Goldman Sachs, Halozyme Therapeutics, Inc. (NASDAQ:HALO) also received a Hold from J.P. Morgan’s Jessica Fye in a report issued on August 7.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical technology platform company that develops, manufactures, and commercializes drug-device combination products through advanced auto-injector technology.
They offer commercial or functional benefits, including increased patient comfort and adherence, and enhanced tolerability and convenience.
3. Incyte Corporation (NASDAQ:INCY)
Forward P/E: 13.67
Number of Hedge Fund Holders: 42
Incyte Corporation (NASDAQ:INCY) is one of the best affordable biotech stocks to invest in now. In a report released on September 15, Tazeen Ahmad from Bank of America Securities maintained a Buy rating on Incyte Corporation (NASDAQ:INCY) and set a price target of $104.00.
Incyte Corporation (NASDAQ:INCY) reported total revenues of $1.216 billion in its fiscal Q2 2025 results, up 16% year-over-year. Total product revenues for the quarter reached $1.059 billion, up 17% year-over-year.
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics, focusing on oncology, hematology, inflammation, and autoimmunity therapeutic areas.
2. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Forward P/E: 12.50
Number of Hedge Fund Holders: 58
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the best affordable biotech stocks to invest in now. On September 8, BMO Capital analyst Kostas Biliouris reiterated a Buy rating on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), retaining a price target of $115.00.
The analyst told investors that one of the key reasons supporting the optimistic rating is the potential expansion of Palynziq into the adolescent market, which may considerably boost its market share.
Palynziq has exhibited a strong efficacy and safety profile in adolescents, along with improved tolerability and considerable reductions in blood Phe levels compared to adults, according to the analyst.
Biliouris added that BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has a robust base business, and factors such as the potential of other products like Voxzogo support an optimistic outlook for the stock.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and commercializes therapies for serious and life-threatening medical conditions and rare diseases. The company’s product pipeline includes Valoctocogene roxaparvovec, Vosoritide, and BMN 307.
1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Forward P/E: 14.22
Number of Hedge Fund Holders: 73
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of best affordable biotech stocks to invest in now. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced on September 8 the results evaluating “its first-in-class investigational allergen-blocking antibodies in allergen-challenge Phase 3 trials in adults with moderate-to-severe cat or birch allergies.”
The results showed that both trials met their respective primary and key secondary endpoints, with data from the Phase 3 trials set to be presented at an upcoming medical conference.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a pharmaceutical company that develops, discovers, and commercializes therapies for several diseases, including cancer, eye disorders, and allergic conditions.
It has relied on two primary products to drive top-line growth in the past years: Dupixent and Eylea. Dupixent is an eczema treatment whose rights Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) shares with Sanofi. Eylea, which Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) comarkets with Bayer, treats wet age-related macular degeneration.
While we acknowledge the potential of REGN to grow, 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 REGN and that has 100x upside potential, check out our report about this cheapest AI stock.
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