In this article, we will look at the 12 Cheap Biotech Stocks to Buy Now.

On February 27, Eli Casdin, Casdin Capital CEO, appeared on CNBC’s ‘Closing Bell’ to talk about the biotech sector. Last year was a banner year for biotech, and this year it is off to a slow start, even as Casdin declared the macro backdrop to be among the most favorable in years. Discussing this disconnect, he noted that the sector had also started off slowly last year and then ramped up in the last quarter. We’ve just started getting our feet underneath us, according to him, and while some momentum has slowed, we had about $225 billion in M&A, which put a floor under valuation. He believes that people are just “poking around” now, looking for the next one to bet on.

READ ALSO: 11 Cheap Blue Chip Stocks to Buy According to Analysts AND Top 10 Gene Therapy Stocks to Buy According to Hedge Funds.  

Casdin further stated that there is optimism broadly, as we have $200 billion in annual revenue coming off in 2030 for pharma, and they have a trillion-plus in capital to deploy. Talking about AI and biotech, he stated that he likes the idea that AI can eat software, but it cannot eat molecules, which means that you cannot download an antibody and call it a drug. You need a body to take blood out of, and atoms do not care about algorithms. He thus considers AI to be an upgrade engine for biotech, sort of an accelerant supporting the sector.

We also talked about the healthcare sector in a recently published article on the 11 Best Strong Buy Healthcare Stocks to Invest In. Here is an excerpt from the article:

“On February 23, Steven Wieting, CIO Group chief investment strategist, appeared on CNBC’s ‘The Exchange’ to talk about the stock market and the recent price action in stocks. CNBC reported that staples, healthcare, and utilities are all leading, outperforming since January 1 and showing that this is not a one-day trend but has rather been going on since the turn of the calendar. Wieting stated that a lot is going on in the market, with trends showing AI hardware eating software, its effects on the lending industry for software, and several other undercurrents, with healthcare and energy up, the probability of a US strike on Iran, and oil prices picking up sharply at the expense of growth sentiment. He also cited tariffs at 15% and the situation surrounding them.

Talking about healthcare, Wieting stated that he is strongly overweight in healthcare because of how badly it performed and how much policy concern played a role in its deep underperformance, which is now catching up. While it is not a wonderful year-to-date performer, he thinks that there is more there, and cited its low correlation to tech and the circumstances there.

Wieting also talked about the shifting AI sentiment, stating that the market narrative has generally gone quite negative on the broader impact of AI, with the market pricing in the ongoing AI infrastructure boom while associated applications drive considerable declines in business costs. He further said that there are likely to be mistakes and exaggerations within the market sentiment associated with AI.”

Keeping these trends in the biotech sector in view, let’s look at the best cheap biotech stocks to buy now.

Our Methodology

We sifted through the Finviz stock screener to compile a list of the best biotech stocks with a forward P/E below 15 and selected the top 12 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.

Note: All data was recorded on February 28.

​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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

12 Cheap Biotech Stocks to Buy Now

12. Innoviva, Inc. (NASDAQ:INVA)

Innoviva, Inc. (NASDAQ:INVA) is one of the best cheap biotech stocks to buy now. Cantor Fitzgerald lifted the price target on Innoviva, Inc. (NASDAQ:INVA) to $32 from $31 on February 26, maintaining an Overweight rating on the shares. The firm told investors in a research note that the fiscal Q4 revenue of $114.6M surpassed expectations, driven primarily by continued XacDuro inventory builds in China, potentially boosting royalties and milestones in 2026+.

The rating update came after Innoviva, Inc. (NASDAQ:INVA) reported its fiscal Q4 and full year 2025 results on February 25, stating that the durable royalties portfolio generated $58.4 million in revenue for fiscal Q4 and $250.3 million for the full year. Management further reported that IST attained U.S. net product sales of $33.9 million for fiscal Q4 and $119.2 million for the full year, reflecting a 47% year-over-year growth. In addition, the IST product portfolio was strengthened with the U.S. FDA approval of NUZOLVENCE®, which is a first-in-class treatment for uncomplicated urogenital gonorrhea. Innoviva, Inc. (NASDAQ:INVA) also initiated a $125 million share repurchase program in fiscal Q4.

Innoviva, Inc. (NASDAQ:INVA) is involved in the development, commercialization, and financial management of biopharmaceuticals.

11. Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) 

Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) is one of the best cheap biotech stocks to buy now. Guggenheim lifted the price target on Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) to $25 from $20 on February 27, maintaining a Buy rating on the shares and telling investors that it updated its model to reflect fiscal Q4 financials, and continues to be “encouraged” by the company’s goal to achieve profitability in early Q3 of 2026.

The rating update came after Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) announced its fiscal Q4 and full-year 2025 results on February 26. It reported over 1.1 million total VOQUEZNA® prescriptions filled to date, and stated that the net revenues for fiscal Q4 came up to $57.6 million and that for FY25 were $175.1 million, reflecting a 217% increase from FY24. Fiscal Q4 operating expenses came up to $55.9 million, with non-GAAP operating expenses of $50.3 million and net cash usage of approximately $5.2 million, reflecting continued expense discipline. Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) also bolstered its financial position through a $130 million equity offering and modification of term debt.

Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) is a clinical-stage biopharmaceutical company that develops and commercializes novel treatments for gastrointestinal diseases.

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

Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the best cheap biotech stocks to buy now. Halozyme Therapeutics, Inc. (NASDAQ:HALO) has received several bullish rating updates from analysts following its earnings release. Morgan Stanley lifted the price target on the stock to $94 from $78 on February 19, maintaining an Overweight rating on the shares after Halozyme Therapeutics, Inc. (NASDAQ:HALO) reported “strong” Q4 results. It told investors in a research note that it believes 2026 to be “another strong year,” driven by royalty revenues, expanding ENHANZE partnerships, and progressing Hypercon and Surf Bio tech after the acquisitions.

In addition to Morgan Stanley, Benchmark also lifted the price target on Halozyme Therapeutics, Inc. (NASDAQ:HALO) to $90 from $75 on February 19 and reiterated a Buy rating on the shares after what the firm described as “strong quarterly results and positive forward guidance.” The same day, Wells Fargo also raised the price target on Halozyme Therapeutics, Inc. (NASDAQ:HALO) to $75 from $65, reaffirming an Equal Weight rating on the shares and telling investors that it sees the company’s near-term outlook as stable, driven by robust growth from Vyvgart and Darzalex.

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.

9. Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH)

Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) is one of the best cheap biotech stocks to buy now. Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) reported financial results for the three and twelve months ended December 31, 2025, on February 26, 2026. It reported that total revenue for the three and twelve months was $77.1 million and $283.1 million, up 29% and 20%, respectively, compared to $59.9 million and $235.1 million in the prior year periods, respectively.

Net product sales of LUPKYNIS, which is the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis, were $74.2 million and $271.3 million for the three and twelve months, up 29% and 25%, respectively, compared to $57.6 million and $216.2 million for the same periods of 2024, respectively.

Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) further reported that it has cash, cash equivalents, restricted cash, and investments of $398.0 million as of December 31, 2025, compared to $358.5 million in the prior year period. It also repurchased 12.2 million of its common shares for $98.2 million in the year 2025. For 2026, Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) expects total revenue of $315 million to $325 million, up 11% to 15% compared to 2025, and net product sales of $305 million to $315 million, up 12% to 16% compared to 2025.

Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) is a clinical-stage bio-pharmaceutical company involved in the research, development, and commercialization of therapeutic drugs.

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

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is one of the best cheap biotech stocks to buy now. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) reported record fiscal Q4 and record full year 2025 financial results on February 25. Total revenues for the full year 2025 came up to $589.0 million, reflecting a 19.8% year-over-year growth and marking another year of record total revenues for the company. Total revenues for fiscal Q4 2025 were $152.6 million, supported by an 18.3% FIRDAPSE® growth and 67.5% growth of AGAMREE®, which shows continued adoption.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) expects total revenues for the full year 2026 to be in the $615 million and $645 million range, which, according to management, shows confidence in the strength and durability of the FIRDAPSE and AGAMREE franchises. The company attributed strong fiscal Q4 2025 performance to the ongoing organic product growth and the accelerating market uptake of AGAMREE, while the solid full-year 2025 performance was supported by sustained organic momentum and operational discipline.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is a commercial-stage, biopharmaceutical company involved in the development, in-licensing, and commercialization of novel medicines for patients with difficult-to-treat and rare diseases.

7. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is one of the best cheap biotech stocks to buy now. On February 27, Wells Fargo cut the price target on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) to $38 from $45 while maintaining an Overweight rating on the shares. The firm stated that, given 2026 guidance, it appears that the GTx launch reset post safety events could take longer than it expected, and thus it adjusted its ELEVIDYS numbers, arriving at a new price target. That said, Wells Fargo anticipates the siRNA readout to be positive, and thus, the setup is still favorable.

In another development, Baird also cut the price target on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) on February 26, bringing it down to $20 from $22 while maintaining a Neutral rating on the shares. The firm updated its model on the company after its fiscal Q4 and full-year financial results, which it reported on February 25. Net product revenues for the full year 2025 totaled $1.864 billion, comprising $965.6 million of PMO net product revenue and $898.7 million of ELEVIDYS net product revenue. Meanwhile, net product revenues for fiscal Q4 2025 came up to $369.6 million, consisting of $259.2 million of PMO net product revenue and $110.4 million of ELEVIDYS net product revenue.

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial-stage biopharmaceutical company that discovers and develops RNA-targeted therapeutics, gene therapy, and other genetic therapeutic modalities to treat rare diseases. The company has several approved products to treat Duchenne muscular dystrophy and is developing potential therapeutic candidates for more disorders, including neuromuscular and central nervous system-related disorders.

6. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is one of the best cheap biotech stocks to buy now. On February 25, Deutsche Bank adjusted the price target on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) to $30 from $31 and reiterated a Hold rating on the shares, updating its model on the stock post the fiscal Q4 report.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) reported strong 2025 financial results on February 24, with reported revenue of $243.8 million for Q4 2025, representing 21% year-over-year revenue growth for WAKIX®. It generated net product revenue of $868.5 million for the full year 2025, reflecting continued commercial strength as evidenced by six consecutive years of revenue growth and profitability.

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) further stated that WAKIX is on track to exceed $1 billion in revenue and attain blockbuster status in 2026, which highlights the strength and durability of the pitolisant franchise. Management reported that the average number of patients on WAKIX rose by ~400 patients to ~8,500 patients in fiscal Q4 2025, marking the third consecutive quarter of ~400+ patient adds.

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.

5. Royalty Pharma Plc (NASDAQ:RPRX)

Royalty Pharma Plc (NASDAQ:RPRX) is one of the best cheap biotech stocks to buy now. TD Cowen lifted the price target on Royalty Pharma Plc (NASDAQ:RPRX) to $50 from $45 on February 27, maintaining a Buy rating on the shares and telling investors that the company is poised to benefit from unique strengths, including differentiation from its competitors, growth of the biopharma royalty market, and the diversification of its portfolio. The firm thus updated its model to take into account these and other tailwinds.

Royalty Pharma Plc (NASDAQ:RPRX) also received a rating update from Goldman Sachs on February 12. The firm lifted the price target on the stock to $51 from $45 and reiterated a Buy rating on the shares. It told investors in a research note that Royalty Pharma Plc (NASDAQ:RPRX) reported solid fiscal Q4 results, with portfolio receipts and 2026 guidance surpassing expectations, implying 3%-8% year over year growth in royalty receipts. According to Goldman Sachs, Royalty Pharma Plc (NASDAQ:RPRX) remains on track for long-term 10%+ top-line growth, supported by a healthy royalty financing market, robust synthetic royalty performance, and continued commercial momentum, with its $3.5 billion financial capacity also supporting active capital deployment.

Royalty Pharma Plc (NASDAQ:RPRX) funds innovation in the biopharmaceutical industry and buys 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.

4. TG Therapeutics, Inc. (NASDAQ:TGTX)

TG Therapeutics, Inc. (NASDAQ:TGTX) is one of the best cheap biotech stocks to buy now. TG Therapeutics, Inc. (NASDAQ:TGTX) released financial results for fiscal Q4 and full year 2025 on February 26. It reported fiscal Q4 and full year 2025 total revenue of $192.6 million and $616.3 million, respectively, including BRIUMVI U.S. net revenue of $182.7 million and $594.1 million, respectively. U.S. net product revenue for BRIUMVI reached $182.7 million for fiscal Q4 2025, reflecting around 20% quarterly growth over the prior year period, and $594.1 million for the full year of 2025, up approximately 92% year-over-year. Total global full-year 2025 revenue reached $616.3 million.

TG Therapeutics, Inc. (NASDAQ:TGTX) also reported the expansion of commercialization outside of the United States with its partner Neuraxpharm, with BRIUMVI now approved in several regions, including the European Union, United Kingdom, Switzerland, Australia, Kuwait, and the United Arab Emirates.

For the full-year 2026, the company’s target total global revenue is around $875-$900 million, including BRIUMVI U.S. net product revenue of approximately $825-$850 million.

TG Therapeutics, Inc. (NASDAQ:TGTX) is involved in the acquisition, development, and commercialization of novel treatments for B-cell malignancies and autoimmune diseases. The company’s product portfolio includes TG-1501, TG-1701, Ublituximab, and Umbralisib.

3. Soleno Therapeutics, Inc. (NASDAQ:SLNO)

Soleno Therapeutics, Inc. (NASDAQ:SLNO) is one of the best cheap biotech stocks to buy now. Wells Fargo cut the price target on Soleno Therapeutics, Inc. (NASDAQ:SLNO) to $110 from $114 on February 27, reaffirming an Overweight rating on the shares and stating that while some investors’ near-term takeout thesis may be removed by the management’s commentary on building out a pipeline plus LCM for Vykat XR and the CFO’s retirement, shares remain cheap relative to expected FY26 revenue and cash flow, and the firm is a buyer at these levels.

TD Cowen also lowered the price target on Soleno Therapeutics, Inc. (NASDAQ:SLNO) to $85 from $120 on February 26 and maintained a Buy rating on the shares. The firm told investors that the company delivered a strong Q4 of Vykat XR sales and finished 2025 profitably. It added that management reaffirmed a strong commercial trajectory for 2026, with roughly 1K new start forms anticipated in the next 9-12 months.

The rating updates came after Soleno Therapeutics, Inc. (NASDAQ:SLNO) announced its fiscal Q4 and full year 2025 financial results on February 25, reporting revenue, net, from the sale of VYKAT XR for the three and twelve months ended December 31, 2025, to be $91.7 million and $190.4 million, respectively. The company generated $48.7 million of cash flow from operating activities in fiscal Q4, and achieved profitability with positive net income of $20.9 million for the year.

Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics to treat rare diseases. The company focuses on the treatment of neurobehavioral and metabolic disorders. Its lead candidate, Diazoxide Choline Controlled-Release (DCCR), is an oral tablet that treats Prader-Willi Syndrome (PWS).

2. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the best cheap biotech stocks to buy now. Canaccord lifted the price target on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to $104 from $98 on February 26 and reiterated a Buy rating on the shares. It stated that while the company’s fiscal Q4 2025 earnings showed a slight top-line beat, they were otherwise uneventful, following BioMarin Pharmaceutical Inc.’s (NASDAQ:BMRN) recent announcement of the acquisition of Amicus and updates at the January investor conference.

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) also received a rating update from Guggenheim on February 25, with the firm cutting the price target on the stock to $86 from $106 while maintaining a Buy rating on the shares.

However, the same day, Bernstein lifted the price target on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to $94 from $90 and maintained an Outperform rating on the shares. The firm stated that revenues of $875 million beat by 5%, but EPS of 46c missed by 16%, which was primarily due to the consensus not modeling Roctavian write-down. It added that the total revenue guidance was missed by 6%, while EPS was missed by 3%, with product sales guidance looking soft on Voxzogo and solid on Enzymes.

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. Jazz Pharmaceuticals (NASDAQ:JAZZ)

Jazz Pharmaceuticals (NASDAQ:JAZZ) is one of the best cheap biotech stocks to buy now. Jazz Pharmaceuticals (NASDAQ:JAZZ) was initiated with an Overweight rating by Barclays on February 27, with the firm setting a $224 price target on the shares and stating that its key opinion leader calls show that the company’s central nervous system base business is “sticky.” It also sees “oncology-fueled” Ziihera growth in multiple tumor types in the longer term, with significant readouts in 2027 for the company.

Jazz Pharmaceuticals (NASDAQ:JAZZ) received several other bullish rating updates on February 25. Morgan Stanley lifted the price target on the stock to $226 from $225 and maintained an Overweight rating on the shares, updating estimates on the stock following the release of its fiscal Q4 report. The same day, Deutsche Bank also lifted the price target on Jazz Pharmaceuticals (NASDAQ:JAZZ) to $255 from $210 and reiterated a Buy rating on the shares.

Jazz Pharmaceuticals (NASDAQ:JAZZ) also received a bullish rating update from BofA on February 25. The firm reiterated a Buy rating on the shares and raised the price target to $275 from $263, telling investors that while the fiscal Q4 results included modest top and bottom-line beats, FY26 revenue guidance was about in-line with the firm’s forecast and 3% below consensus at the mid-point. The firm further noted that “solid” guidance should allow investors to own the stock for Ziihera’s gastroesophageal adenocarcinoma launch.

Jazz Pharmaceuticals (NASDAQ:JAZZ) develops medicines for serious diseases. Its primary marketed products include Xywav, Xyrem oral solution, Epidiolex oral solution, Rylaze, Zepzelca, Defitelio, and Vyxeos liposome for injection. These medicines treat excess daytime sleepiness (EDS) in narcolepsy patients seven years of age or older, tepatic veno-occlusive disease (VOD), and other ailments.

While we acknowledge the potential of JAZZ 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 JAZZ and that has 100x upside potential, check out our report about this cheapest AI stock.

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