In this article, we will be taking a look at the 20 Best Biotech Stocks Under $20 to Buy Now.

The U.S. biotechnology market enters 2026 as the largest global biotech market, with an estimated size of $552.39 billion in 2023, and is projected to grow to $1.24 trillion by 2030. North America accounts for over 40% of global biotechnology revenue, maintaining its lead due to capital availability, clinical infrastructure, and research funding.

Three dramatic changes characterize the biopharma business as of January 2026. AI-Integrated Development is now concentrating on “AI-driven clinical architecture,” which goes beyond drug discovery and employs machine learning to anticipate regulatory success and stratify patient populations in order to reduce the duration of medication development.

The M&A Renaissance follows a record-breaking 2025 with about 70 transactions totaling over $20 million. Due to a “patent cliff” that might jeopardize $300–400 billion in yearly revenue by 2030–2032, big pharmaceutical companies are actively purchasing biotech startups with advanced, late-stage pipelines in metabolic health, neuroscience, and oncology.

As prices rise due to shifting trade policies and geopolitical unpredictability, operational resilience is becoming more important. The pharmaceutical industry may gain $13–$19 billion a year from proposed tariffs, which would encourage American businesses to reshore production and make investments in local bioprocessing capacity, including advanced biologics and cell and gene therapy facilities.

The US biotech industry continues to be a shining example of high-alpha opportunity, despite ongoing debate over regulatory obstacles and medication pricing adjustments under the Inflation Reduction Act.

With this being said, let’s now examine the best biotech stocks under $20.

Our Methodology

For our methodology, we first screened for stocks trading below $20 with positive upside potential. From this pool of stocks, we selected the 20 stocks priced under $20 as of the January 28 market close and ranked them in ascending order based on the number of hedge fund holders as of Q3 2025, using data from the Insider Monkey database. In cases where multiple stocks had the same number of hedge fund holders, the stock price was used as a tiebreaker to determine their final placement in the ranking.

Why do we care about what hedge funds do? 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).

Here is our list of the 20 best biotech stocks under $20 to buy now.

20. Black Diamond Therapeutics, Inc. (NASDAQ:BDTX)

Number of Hedge Fund Holders: 18

Stock Price: $2.57

Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) is one of the twenty best biotech stocks.

TheFly reported on January 16 that Piper Sandler lowered the price target for BDTX to $8 from $9 and maintained an Overweight rating. The change coincided with the company’s revision of several models and price estimates throughout its biotechnology coverage, as well as an update to its 2026 Catalyst Tracker.

Separately, on December 3, 2025, Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) released positive Phase 2 data for silevertinib in frontline NSCLC with non-classical EGFR mutations and demonstrated robust CNS activity with a 60% response rate. The company plans to negotiate with the FDA and carry out a randomized Phase 2 glioblastoma study in 2026 with funding through the second half of 2028.

Following this, on December 3, Guggenheim did not set a price objective for BDTX and instead reduced its recommendation from Buy to Neutral. The anticipated 2Q26 progression-free survival result and the planned Phase 3 trial’s increased risk were highlighted by analyst Brad Canino.

Black Diamond Therapeutics, Inc. (NASDAQ:BDTX) is a clinical-stage oncology company that focuses on developing MasterKey therapies that target families of oncogenic mutations across tumors. Its pipeline includes brain-penetrant, precision small-molecule inhibitors in trials for EGFR and other mutation-driven cancers, which aim to address unmet needs in solid tumors.

19. Altimmune, Inc. (NASDAQ:ALT)

Number of Hedge Fund Holders: 18

Stock Price: $5.12

One of the best biotech stocks on our list is Altimmune, Inc. (NASDAQ:ALT).

TheFly reported on January 27 that Barclays initiated coverage of ALT with an Overweight rating and a $20 price target. Strong underlying fundamentals, continuous merger and acquisition activity, and alleviating medication pricing concerns are the reasons behind the firm’s optimistic outlook for the biotech industry in 2026. Additionally, Barclays pointed out that ALT and other biotech stocks are still cheap in comparison to their pipeline potential.

Altimmune, Inc. (NASDAQ:ALT) also announced on the same day that it intends to use the net proceeds from the offering for working capital, general company needs, and getting ready for its next Phase 3 MASH research. The FDA’s Breakthrough Therapy Designation and positive Phase 2b 48-week findings bolster the company’s claim that pemvidutide is a novel glucagon/GLP-1 dual agonist.

Altimmune, Inc. (NASDAQ:ALT) is a clinical-stage biopharmaceutical company developing next-generation peptide-based therapeutics for metabolic and liver diseases, including obesity and metabolic dysfunction-associated steatohepatitis (MASH). Its lead candidate, pemvidutide, targets GLP-1 and glucagon receptors to reduce weight, liver fat, and cardiometabolic risk.

18. ImmunityBio, Inc. (NASDAQ:IBRX)

Number of Hedge Fund Holders: 18

Stock Price: $6.15

ImmunityBio, Inc. (NASDAQ:IBRX) is among the best biotech stocks.

TheFly reported on January 20 that Piper Sandler raised its price target on IBRX to $7 from $5 and maintained an Overweight rating. According to the update, U.S. ANKTIVA net sales increased by almost 700% year over year to $113 million in 2025. Revenue is expected to reach $180 million in 2026. A possible label expansion for ANKTIVA in 2027 may be supported by positive QUILT-2.005 data anticipated in Q4 2026, according to the firm’s encouraging interim results.

Additionally, on January 23, ImmunityBio, Inc. (NASDAQ:IBRX) reported Phase 2 QUILT-3.078 results in recurrent GBM. According to the studies, the longest survival was 12 months, and the median overall survival has not achieved, meaning that 19 out of 23 patients are still living. The regimen had a reasonable safety profile, immunological competence was preserved, and severe lymphopenia improved (ALC ≥1.4 ×10³/µL).

ImmunityBio, Inc. (NASDAQ:IBRX) is a U.S. biotechnology company developing next‑generation immunotherapies and vaccines that enhance the natural immune system to fight cancers and infectious diseases.