5 Best Biotech Penny Stocks to Buy in 2026

3. Allogene Therapeutics Inc. (NASDAQ:ALLO)

Number of Hedge Fund Holders: 21

Allogene Therapeutics Inc. (NASDAQ:ALLO) is one of the best biotech penny stocks to buy in 2026. On April 16, Allogene Therapeutics closed its underwritten public offering, raising $200.4 million in aggregate gross proceeds. The offering consisted of 87.5 million shares of common stock priced at $2.00 per share, plus an additional 12.7 million shares purchased through a partial exercise of the underwriters’ option. The transaction involved a large syndicate of financial institutions, with Goldman Sachs & Co. LLC, Jefferies, and TD Cowen serving as lead joint bookrunners.

The company intends to use the net proceeds for general corporate purposes. Key areas of allocation include clinical trial expenses, ongoing R&D, G&A costs, and capital expenditures. This capital infusion provides Allogene Therapeutics Inc. (NASDAQ:ALLO) with enhanced financial flexibility to advance its pipeline of off-the-shelf chimeric antigen receptor T-cell (CAR T) therapies.

The offering was executed under an existing shelf registration statement that became effective in April 2024. Following the closing, the company’s common stock was trading down approximately 2.67%. Joint bookrunners for the deal also included Piper Sandler and William Blair, while Baird, Canaccord Genuity, and TPG Capital BD, LLC provided additional management and co-management support.

Allogene Therapeutics Inc. (NASDAQ:ALLO) is a clinical-stage biotechnology company dedicated to the development of off-the-shelf allogeneic CAR-T cell therapies for cancer and autoimmune diseases. The company’s goal is to provide a scalable, readily available cell therapy derived from healthy donors.