In this article, we will look at the 14 Best Biotech Penny Stocks to Buy Right Now.
Is The Biotech Sector Ready for a Breakout?
On July 8, Mizuho’s healthcare strategist Jared Holz appeared on CNBC’s ‘Closing Bell Overtime’ to talk about whether it is time for the biotech sector to undergo a breakout.
He acknowledged that biotech has been a “super tough sector” either way, as there are hundreds of publicly traded stocks that do not add up to anything in aggregate. He added that since there are a lot of negatives and positives, it is tough to make an industry call.
However, Holz stated that he believes the sector is trading “a little bit better,” as it stopped going down every single day after “indiscriminately trading horribly for so long.”
READ ALSO: 10 Best Strong Buy Stocks to Buy Under $10 and 10 Most Undervalued Blue Chip Stocks to Buy According to Hedge Funds.
He reasoned that we are now at a point where all the negatives, such as pricing pressures and competition in the amount of assets in the publicly traded arena, are well understood and well-digested, marking the time for a move higher. It might not be a massive move, but it would certainly be a less negative one, according to Holz.
With these trends in view, let’s look at the best biotech penny stocks to buy now.
A laboratory filled with beakers and flasks, signifying the biotechnology industry.
Our Methodology
We used Finviz to make a list of biotech stocks with a stock price under $5 and selected the top 14 with the highest number of hedge fund holders as of Q1 2025. We sourced 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 July 30.
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).
14 Best Biotech Penny Stocks to Buy Right Now
14. Sana Biotechnology, Inc. (NASDAQ:SANA)
Stock Price: $4.36
Number of Hedge Fund Holders: 13
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the best biotech penny stocks to buy right now. Citi analyst Samantha Semenkow maintained a bullish stance on Sana Biotechnology, Inc. (NASDAQ:SANA), giving it a Buy rating on July 2 with a $15 price target.
The analyst based the rating on Sana Biotechnology, Inc.’s (NASDAQ:SANA) potential in addressing notable market opportunities.
Semenkow stated that the company’s Type 1 Diabetes (T1D) program has exhibited considerable proof-of-concept results, with updated six-month data showing durable c-peptide production and successful graft survival without the need for immunosuppression.
According to the analyst, this data consistency bolsters confidence in Sana Biotechnology, Inc.’s (NASDAQ:SANA) approach and paints a positive picture for its T1D asset, SC451, anticipated to make progress towards an IND as early as 2026.
The same day, Morgan Stanley analyst Maxwell Skor also assumed coverage of Sana Biotechnology, Inc. (NASDAQ:SANA) with an Overweight rating and $12 price target. The analyst expects an investigational new drug filing as early as next year for its proprietary HIP-modified, islet stem-cell derived T1D therapy, SC451.
Sana Biotechnology (NASDAQ:SANA) is a biotechnology company that specializes in using engineered cells as medicines. It develops cell engineering programs that transform treatment across several therapeutic areas with treatment gaps, including diabetes, oncology, the central nervous system, and B-cell-mediated autoimmune disorders.
13. Atai Life Sciences (NASDAQ:ATAI)
Stock Price: $3.35
Number of Hedge Fund Holders: 14
Atai Life Sciences (NASDAQ:ATAI) is one of the best biotech penny stocks to buy right now. On July 30, H.C. Wainwright analyst Patrick Trucchio raised the firm’s price target on Atai Life Sciences (NASDAQ:ATAI) to $15 from $10 while keeping a Buy rating on the shares.
The firm told investors that it is bullish on Atai Life Sciences (NASDAQ:ATAI) despite the Phase 2b trial, which evaluated indiabine in patients with cognitive impairment associated with schizophrenia, missing the primary endpoint.
The analyst added in a research note that management reiterated Atai Life Sciences’ (NASDAQ:ATAI) focus on its wholly-owned psychedelics pipeline in a follow-up call. This includes BPL-003, which has continued to surpass expectations.
The firm thus cited Atai Life Sciences’ (NASDAQ:ATAI) focus on its “most promising near-term asset” for the target upgrade.
Headquartered in Germany, Atai Life Sciences (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on treating mental health disorders.
12. Prime Medicine Inc. (NASDAQ:PRME)
Stock Price: $3.98
Number of Hedge Fund Holders: 15
Prime Medicine Inc. (NASDAQ:PRME) is one of the best biotech penny stocks to buy right now. On July 7, JonesTrading analyst Soumit Roy maintained a Buy rating on Prime Medicine Inc. (NASDAQ:PRME) with a $5.00 price target.
The analyst based the optimistic rating on Prime Medicine Inc.’s (NASDAQ:PRME) stock performance, stating that the considerable increase in its stock price since mid-June and the recent management changes have garnered investor attention.
Roy added that a significant factor supporting this momentum is the acquisition of Verve by Lilly, as it highlights the interest of the market in gene editing technologies, especially for larger market diseases.
Prime Medicine Inc.’s (NASDAQ:PRME) innovative prime editing technology lends it a promising position as a candidate for acquisition, according to the analyst, especially since it avoids issues experienced with base editing. The company’s attractive valuation further supports the analyst’s claim.
Headquartered in Cambridge, MA, Prime Medicine Inc. (NASDAQ:PRME) is a biotechnology company that develops one-time curative genetic therapies.
11. Autolus Therapeutics plc (NASDAQ:AUTL)
Stock Price: $2.50
Number of Hedge Fund Holders: 17
Autolus Therapeutics plc (NASDAQ:AUTL) is one of the best biotech penny stocks to buy right now. On July 21, analyst Gil Blum from Needham maintained a Buy rating on Autolus Therapeutics plc (NASDAQ:AUTL) with a $10.00 price target.
The analyst told investors that the conditional EU approval of Aucatzyl (obe-cel) for adult patients with relapsed or refractory acute lymphoblastic leukemia (ALL) is a notable milestone for Autolus Therapeutics plc (NASDAQ:AUTL), adding that Aucatzyl has already attained conditional approval in the UK and a launch is expected soon.
Blum further reasoned that the US market is showing early demand, corroborated by $9 million in sales for fiscal Q1 2025. When considered in conjunction with the estimated sales growth, these factors support the optimistic rating for Autolus Therapeutics plc (NASDAQ:AUTL).
Autolus Therapeutics (NASDAQ:AUTL) is a clinical-stage biopharmaceutical company based in the United Kingdom. It develops programmed T cell therapies for treating autoimmune diseases and cancer and focuses on chimeric antigen receptor (CAR) T cell therapy.
The company engineers controlled, targeted, and highly active T cell therapy product candidates designed to recognize target cells, break their defense mechanisms down, and eliminate them. It is doing so using a portfolio of proprietary and modular T-cell programming technologies.
10. AbCellera Biologics Inc. (NASDAQ:ABCL)
Stock Price: $4.73
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the best biotech penny stocks to buy right now. On July 28, Piper Sandler analyst Allison Bratzel maintained a Buy rating on AbCellera Biologics Inc. (NASDAQ:ABCL) and set a price target of $17.00.
AbCellera Biologics Inc. (NASDAQ:ABCL) generated $4.2 million in total revenue in fiscal Q1 2025, and reported a net loss of $45.6 million, compared to a net loss of $40.6 million in 2024.
The company reached a cumulative total of 97 partner-initiated programs starts with downstreams, and maintained a cumulative total of 16 molecules to have reached the clinic.
AbCellera Biologics (NASDAQ:ABCL) solves antibody discovery problems by integrating data science, technology, infrastructure, and interdisciplinary teams. It develops and discovers antibody medicines for indications across therapeutic areas, including metabolic and endocrine conditions, cancer, and autoimmune disorders.
It boasts technology platforms that unlock drug classes, modalities, and targets, including T-cell engagers, peptide-MHCs, and transmembrane proteins.
9. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Stock Price: $2.71
Number of Hedge Fund Holders: 20
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the best biotech penny stocks to buy right now. On July 1, analyst Gil Blum from Needham maintained a Buy rating on Taysha Gene Therapies, Inc. (NASDAQ:TSHA), keeping the price target at $8.00.
The analyst gave the positive rating due to various factors supporting Taysha Gene Therapies, Inc.’s (NASDAQ:TSHA) competitive market positioning, stating that its pivotal study design for the TSHA-102 gene therapy appears potentially more successful and straightforward when compared to Neurogene’s NGN-401.
Blum added that while the developmental milestones for both studies are similar, NGN-401’s study has a higher bar for success as it requires minimal improvement on the CGI-I scale.
The analyst also reasoned that NGN-401’s study involves a younger patient population that may introduce confounding factors because of spontaneous developmental improvements. But since Taysha Gene Therapies, Inc.’s (NASDAQ:TSHA) study includes an older age group, these variables may be potentially reduced.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated virus (AAV) based gene therapies to treat monogenic diseases of the central nervous system.
The company is also involved in the development of multiple gene therapy platforms, including AAV9 Discovery, Novel Capsid, and AAV Redosing.
8. Savara Inc. (NASDAQ:SVRA)
Stock Price: $2.65
Number of Hedge Fund Holders: 24
Savara Inc. (NASDAQ:SVRA) is one of the best biotech penny stocks to buy right now. On June 2, Oppenheimer assumed coverage of Savara Inc. (NASDAQ:SVRA) with an Outperform rating, bringing the price target down from $15 to $5.
The rating update came after the company’s quarterly results, with management announcing that it attained a Refusal to File for its BLA for Molbreevi with the FDA requesting additional CMC data.
The firm noted that while this is unexpected, the fact that the RTF was not associated with efficacy or safety, and no additional efficacy trials were requested/recommended, is quite encouraging.
Oppenheimer still believes that Molbreevi is well-positioned for commercial success, supported by the strength of the Phase 3 IMPALA trial. This holds especially true considering the challenges of whole lung lavage and the lack of approved drug therapies.
Savara Inc. (NASDAQ:SVRA) is a clinical-stage pharmaceutical company that develops and commercializes novel therapies for serious or life-threatening rare respiratory diseases. The company’s program includes molgramostim, an inhaled formulation of recombinant human GM-CSF being developed to treat autoimmune pulmonary alveolar proteinosis.
7. Ardelyx Inc. (NASDAQ:ARDX)
Stock Price: $4.34
Number of Hedge Fund Holders: 28
Ardelyx Inc. (NASDAQ:ARDX) is one of the best biotech penny stocks to buy right now. On July 29, BTIG analyst Julian Harrison maintained a Buy rating on Ardelyx Inc. (NASDAQ:ARDX), retaining the price target of $14.00 and supporting the rating with the company’s market positioning and growth potential.
The analyst told investors that a significant factor supporting the optimistic rating is the expected growth in Ibsrela’s revenue, with projections of a 21% growth compared to last quarter, and a strong estimated growth for the rest of the year.
Harrison added that this growth trajectory is supported by the attainable $1 billion peak net sales target, which appears conservative, provided Ibsrela’s unique market position as the only non-secretagogue treatment option and the current market conditions.
The analyst added that Ibsrela’s market opportunity is further supported by the fact that up to 50% of IBS-C patients do not exhibit adequate response to the existing treatments, which leaves a gap that Ibsrela can fill.
Ardelyx Inc. (NASDAQ:ARDX) develops and commercializes biopharmaceutical products. It is also involved in the development of an innovative platform that discovers new biological mechanisms and pathways to develop efficacious therapies, reducing the drug-drug interactions and side effects of traditional medicines.
6. Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI)
Stock Price: $2.52
Number of Hedge Fund Holders: 29
Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) is one of the best biotech penny stocks to buy right now. Wells Fargo analyst Brandon Couillard maintained a Buy rating on Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) on June 25, setting a price target of $4.00.
The analyst based the rating on Maravai LifeSciences Holdings, Inc.’s (NASDAQ:MRVI) recent leadership changes, stating that Raj Asarpota’s appointment as the CFO is a strategic move primarily because of his prowess in financial leadership and prior collaborations with the new CEO, Bernd Brust.
Couillard expects this transition to align with Maravai LifeSciences Holdings, Inc.’s (NASDAQ:MRVI) focus on strategic growth and financial discipline.
He added that Asarpota’s history of successful divestitures and acquisitions is expected to bring considerable operational efficiencies and value creation to Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI), supporting the optimistic outlook for the company.
Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) supports the development of drug therapies, novel vaccines, and diagnostics to enable research on human diseases. The company’s operations are divided into the following segments: Nucleic Acid Production and Biologics Safety Testing.
5. MannKind Corporation (NASDAQ:MNKD)
Stock Price: $3.90
Number of Hedge Fund Holders: 29
MannKind Corporation (NASDAQ:MNKD) is one of the best biotech penny stocks to buy right now. Analyst Yun Zhong from Wedbush maintained a Buy rating on MannKind Corporation (NASDAQ:MNKD) on June 27, setting an $11.00 price target.
The analyst based the rating on MannKind Corporation’s (NASDAQ:MNKD) innovative inhaled insulin product, Afrezza, stating that it represents a considerably undervalued opportunity in the diabetes treatment market.
Clinical data from the Phase 3 INHALE-1 and INHALE-3 studies support Afrezza’s potential in both the adult and pediatric population. The data also highlights the product’s fit in the current treatment paradigm, positioning it as an ultra-rapid acting insulin option that may boost market adoption.
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company that develops and commercializes innovative therapeutic devices and products that address serious unmet medical needs for endocrine and orphan lung diseases.
The company’s pipeline and products include Afrezza, Pediatric Afrezza, V-Go, Tyvaso DPI, MNKD-101, MNKD-201, MNKD-301, and MNKD-501.
4. Nuvation Bio Inc. (NYSE:NUVB)
Stock Price: $2.50
Number of Hedge Fund Holders: 34
Nuvation Bio Inc. (NYSE:NUVB) is one of the best biotech penny stocks to buy right now. In a report released on July 7, Leonid Timashev from RBC Capital maintained a Buy rating on Nuvation Bio Inc. (NYSE:NUVB), setting a price target of $6.00.
On June 11, Nuvation Bio Inc. (NYSE:NUVB) announced the US Food and Drug Administration’s (FDA) approval of IBTROZI (taletrectinib) to treat adult patients with locally advanced or metastatic ROS1-positive (ROS1+) non-small cell lung cancer (NSCLC).
IBTROZI is a highly selective, next-generation oral ROS1 tyrosine kinase inhibitor (TKI) that addresses some of the outstanding challenges associated with the treatment of ROS1+ NSCLC.
The product is generally well tolerated and exhibits a high response rate with durable benefit and intracranial activity, offering a new treatment option for advanced ROS1+ NSCLC.
Nuvation Bio (NYSE:NUVB) is a biopharmaceutical company that develops therapeutic and differentiated candidates to tackle the gaps in oncology.
It is advancing several clinical-stage candidates, including a bromodomain and extra-terminal (BET) inhibitor, a ROS1 inhibitor, a mutant isocitrate dehydrogenase 1 (mIDH1) inhibitor, and a drug-drug conjugate (DDC).
3. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Stock Price: $3.69
Number of Hedge Fund Holders: 35
Relay Therapeutics, Inc. (NASDAQ:RLAY) is one of the best biotech penny stocks to buy right now. In a report released on July 29, Peter Lawson from Barclays maintained a Buy rating on Relay Therapeutics, Inc. (NASDAQ:RLAY) with a price target of $17.00.
Relay Therapeutics, Inc. (NASDAQ:RLAY) reported in its fiscal Q1 2025 earnings that it implemented strategic cost reductions to extend operating runway into 2029. The reductions are also aimed at funding key objectives for the company.
These objectives include the “execution of RLY-2608 Phase 1 vascular malformations trial through clinical proof-of-concept data”, advancement of Fabry and NRAS program to Investigational New Drug application (IND) readiness, advancement of one research-stage program, and more.
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a clinical-stage precision medicine company that uses advanced computational and experimental technologies to innovate drug discovery.
Its primary focus is on genetic disease indications and targeted oncology. The company’s Dynamo platform integrates a range of cutting-edge experimental and computational approaches to understand protein structure and motion in drug discovery.
2. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Stock Price: $2.79
Number of Hedge Fund Holders: 37
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the best biotech penny stocks to buy right now. On July 15, Goldman Sachs downgraded Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) to Sell from Neutral, bringing the price target down to $1 from $8.
The firm told investors in a research note that the slower-than-expected launch of Iovance Biotherapeutics, Inc.’s (NASDAQ:IOVA) lead drug Amtagvi in second-line melanoma is the primary reason behind the downgrade.
It added that a physician survey and key opinion leader discussions show underutilization of Amtagvi because of logistical and operational complexities and a limited eligible patient population.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a biopharmaceutical company that develops and commercializes cell therapies as novel cancer immunotherapy products. Its lead product candidate is LN-144, an autologous adoptive cell therapy for metastatic melanoma.
1. Geron Corporation (NASDAQ:GERN)
Stock Price: $1.16
Number of Hedge Fund Holders: 41
Geron Corporation (NASDAQ:GERN) is one of the best biotech penny stocks to buy right now. Faisal Khurshid, an analyst from Leerink Partners, reiterated a Buy rating on Geron Corporation (NASDAQ:GERN) on July 21, keeping the associated price target at $3.00.
The analyst told investors that Geron Corporation (NASDAQ:GERN) is anticipated to report Rytelo net revenues slightly surpassing consensus expectations in its fiscal Q2 2025 results, suggesting potential growth.
Despite the challenges in its launch, Khurshid expressed optimism regarding management’s recent strategic changes, including sales force expansion and leadership turnover, stating that they may support growth in the second half of the year.
The analyst also acknowledged that while concerns about Rytelo’s market performance and toxicity issues exist, Geron Corporation’s (NASDAQ:GERN) current valuation suggests limited downside risk, suggesting a cautiously optimistic outlook for the company.
Geron Corporation (NASDAQ:GERN) is a biotechnology company that develops Imetelstat, a telomerase inhibitor in hematologic myeloid malignancies. It focuses on oncology-focused therapeutic products.
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