10 Best Biotech Stocks Under $6 in 2021

Published April 20, 2021 at 10:51 am EDT Updated September 7, 2026 at 1:27 pm EDT

In this article we will take a look at the 10 best biotech stocks under $6 in 2021.

The global biotechnology sector is expected to grow to more than $2.5 trillion by the end of this decade. The growth in the industry is expected to be driven by innovation, research, and new scientific discoveries. There is plenty of reason to be hopeful about the future of biotechnology, one of the core ones being the performance of the sector in 2020, a year ravaged by the worst pandemic in more than hundred years that took the lives of millions across the world. Even through the grim twelve months, the biotech sector exceeded market expectations.

In 2020, even as most biotech firms dedicated a large part of the year to finding a cure for the coronavirus, there were 53 new medicines approved by the US drug agency. This was the second-highest number of medicines approved in a single year. Some of the notable mentions in the new medicine list include Danyelza, a drug for pediatric neuroblastoma, developed by Y-mAbs Therapeutics, Inc. (NASDAQ: YMAB), and Trodelvy, a treatment for triple negative breast cancer, developed by Gilead Sciences, Inc. (NASDAQ: GILD).

Growth Catalysts for Biotech Stocks

Most biotechnology stocks hit all-time highs in 2020. The SPDR S&P Biotech ETF was up nearly 50% during the year, and other indices, like the NASDAQ Biotech Index, also saw double digits growth over the past twelve months, outperforming other sectors of the economy. In 2021, billions of dollars worth of money will be spent by governments across the world on biotech companies mass producing COVID-19 vaccines, like Moderna, Inc. (NASDAQ: MRNA), Pfizer Inc. (NYSE: PFE), and Johnson & Johnson (NYSE: JNJ).

The trends highlight that there is cause for concern as well. Medicine prices are skyrocketing and there are several world governments debating policies to lower the costs of drugs essential to survival of terminally ill patients. As environmental concerns overshadow nearly every top global summit, the biotech sector is increasingly expected to play a part to resolve issues like plastic waste dumps in the oceans and landfills that pollute fertile soil. It is estimated that 14 billion pounds of trash, most of it plastic, is dumped in the world’s oceans every year.

The biotech sector is also becoming a large industry that offers a lot of jobs and growth opportunities. For example, the life sciences industry in Florida alone supports more than 83,000 people. Another possible growth indicator is the breakthroughs being made in gene research. However, investors need to be wary of fraudulent practices as well. For those still seeking a way into the sector, cheap biotech stocks might be the answer. The case of Theranos CEO Elizabeth Holmes illustrates the perils of hedge fund driven high-risk investment strategies.

The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Photo by National Cancer Institute on Unsplash

With this context in mind, here is our list of 10 best biotech stocks under $6 in 2021.

Best Biotech Stocks Under $6 in 2021

10. MediciNova, Inc. (NASDAQ: MNOV)

Number of Hedge Fund Holders: 4
Price as of April 19, 2021: $4.48 per share

MediciNova, Inc. (NASDAQ: MNOV) is a California-based biotech firm that develops novel therapeutics with a focus on neurology, respiratory, and liver diseases. The products that the company is developing include an oral anti-inflammatory and neuroprotective agent for treating neurological disorders and a selective beta-2-adrenergic receptor agonist for the treatment of acute exacerbations of asthma. MediciNova was founded in 2000 and is placed tenth on our list of 10 best biotech stocks under $6 in 2021.

At the end of the fourth quarter of 2020, 4 hedge funds in the database of Insider Monkey held stakes worth $2.4 million in the firm, down from 5 in the preceding quarter worth $2.2 million. In March, the firm had announced that it was shutting down research into the development of a COVID-19 vaccine so that it could concentrate on other drugs. The firm has also recently announced a partnership with Biomedical Advanced Research and Development Authority for a medical countermeasure against chlorine gas-induced lung damage.

9. Voyager Therapeutics, Inc. (NASDAQ: VYGR)

Number of Hedge Fund Holders: 7
Price as of April 19, 2021: $4.47 per share

Voyager Therapeutics, Inc. (NASDAQ: VYGR) is a Massachusetts-based biotech firm that focuses on gene therapy and the development of treatments for patients suffering from severe neurological diseases. One of the products that the company offers is VY-AADC, an open-label trial drug for the treatment of Parkinson’s disease. It also drugs in the pipeline for the treatment of amyotrophic lateral sclerosis, Huntington’s disease, Friedreich’s ataxia; and tauopathies, including Alzheimer’s disease, progressive supranuclear palsy, and frontotemporal dementia.

Voyager has agreements in place with several universities and other drug firms for collaborative projects, including a partnership with Thermo Fisher Scientific and Fujifilm Diosynth Biotechnologies to support the development of gene therapy programs. Voyager was founded in 2013 and is placed ninth on our list of 10 best biotech stocks under $6 in 2021. Out of the hedge funds being tracked by Insider Monkey, New York-based Armistice Capital holds the most shares in the firm – 3.3 million – worth more than $24 million.

8. OncoCyte Corporation (NASDAQ: OCX)

Number of Hedge Fund Holders: 6
Price as of April 19, 2021: $4.45 per share

OncoCyte Corporation (NASDAQ: OCX) is a California-based biotech firm that focuses on molecular diagnostics. The firm aims to provide products for the care of lung cancer patients. It also develops laboratory tests for the detection of cancer. One of the products that the company offers is named DetermaRx, a molecular test for early stage adenocarcinoma of the lung; and DetermaIO, a proprietary gene expression assay. The biotech firm was founded in 2009 and is placed eighth on our list of 10 best biotech stocks under $6 in 2021.

Earlier this month, the company announced that one of its drugs was showing correlation with immunotherapy responses in bladder cancer. The company said that the results added value to the findings of drug tests related to lung and breast cancers. Earlier this year, OncoCyte CEO Andrews Asbury bought shares worth more than $50,000 in the company. At the end of the fourth quarter of 2020, 6 hedge funds in the database of Insider Monkey held stakes worth $50 million in the firm, up from 5 in the preceding quarter worth $29 million. Neal C. Bradsher’s Broadwood Capital is the biggest stakeholder in the company, with 14.7 million shares, worth $35.2 million.

7. GeoVax Labs, Inc. (NASDAQ: GOVX)

Number of Hedge Fund Holders: 3
Price as of April 19, 2021: $4.47 per share

GeoVax Labs, Inc. (NASDAQ: GOVX) is a Georgia-based biotech firm that develops vaccines for infectious diseases and cancer. The firm was founded in 1988 with the aim of developing an effective vaccine against HIV-1 and has since expanded in scope. The firm is involved in the development of vaccines against COVID-19, human immunodeficiency virus (HIV); Zika virus; malaria; Ebola virus, Sudan virus, Marburgvirus, and Lassa virus, as well as therapeutic vaccines for HIV, chronic Hepatitis B infections, and solid tumor cancers.

It has collaborative agreements with many laboratories and medical institutes across the United States, including the National Institute of Allergy and Infectious Diseases of the National Institutes of Health; the HIV Vaccines Trial Network; and the Center for Disease Control and Prevention. Out of the hedge funds being tracked by Insider Monkey, New York-based Armistice Capital holds the most shares in the firm – 391,700 – worth more than $0.8 million. Sabby Capital was second on the list with 275,695 shares worth almost $0.3 million.

6. BELLUS Health Inc. (NASDAQ: BLU)

Number of Hedge Fund Holders: 14
Price as of April 19, 2021: $4.61 per share

BELLUS Health Inc. (NASDAQ: BLU) is a Canada-based company that develops medicines for the treatment of chronic cough and other hypersensitization disorders. One of the leading projects of the company is the drug BLU-5937, an oral small molecule antagonist of the P2X3 receptor, which is in Phase II clinical trial for treatment of chronic cough and chronic pruritus. The company has a market cap of more than $350 million and was founded in 1993.

In December, the firm announced that it had set up an at-the-market facility for the selling of company stock of an aggregate price of up to $50 million. In November 2020, investment advisory firm Evercore started coverage of BELLUS with an Outperform rating. Evercore set a $12 price target, almost double the average Wall Street target, on BELLUS stock with a 400% upside potential. At the end of the fourth quarter of 2020, 14 hedge funds in the database of Insider Monkey held stakes worth $62 million in the firm, up from 8 in the preceding quarter.

5. Seelos Therapeutics, Inc. (NASDAQ: SEEL)

Number of Hedge Fund Holders: 4
Price as of April 19, 2021: $5.00 per share

Seelos Therapeutics, Inc. (NASDAQ: SEEL) is a New York-based biotech firm that develops and sells drugs related to treatment of the central nervous system, respiratory, and other disorders. The products that the company markets include SLS-002, an intranasal racemic ketamine for the treatment of acute suicidal ideation and behavior in patients with major depressive disorders. It also makes SLS-005, a protein stabilizer for the treatment of amyotrophic lateral sclerosis, and SLS-006, a dopamine for Parkinson’s disease.

The company has a market cap of more than $411 million and posted an annual revenue of more than $375,000 in the fourth quarter of 2019. It was founded in 2016 and is placed fifth on our list of 10 best biotech stocks under $6 in 2021. Out of the hedge funds being tracked by Insider Monkey, New York-based Renaissance Technologies holds the most shares in the firm – 702,486 – worth more than $1.1 million. Citadel Investment Group was second on the list with 77,814 shares worth $0.12 million.

4. Dyadic International, Inc. (NASDAQ: DYAI)

Number of Hedge Fund Holders: 5
Price as of April 19, 2021: $4.85 per share

Dyadic International, Inc. (NASDAQ: DYAI) is a Florida-based global biotechnology company. Dyadic concentrates on the improvement and application of a proprietary C1 expression system to help developers and manufacturers bring drugs to the market. It also works on making vaccines and drugs related to antigens, monoclonal antibodies, and fab antibody fragments. Dyadic has a drug in a clinical trial that is slated to help in the development of a new generation of COVID-19 vaccines. The firm is fourth on our list of 10 best biotech stocks under $6 in 2021

Dyadic has signed research and development deals with several companies around the world, including the VTT Technical Research Centre of Finland, the Biotechnology Developments for Industry in Pharmaceuticals, Jiangsu Hengrui Medicine, and Serum Institute of India. The company was founded in 1979. At the end of the fourth quarter of 2020, 5 hedge funds in the database of Insider Monkey held stakes worth $0.9 million in the firm, up from 4 in the preceding quarter.

3. Eyenovia, Inc. (NASDAQ: EYEN)

Number of Hedge Fund Holders: 4
Price as of April 19, 2021: $4.86 per share

Eyenovia, Inc. (NASDAQ: EYEN) is a New York-based biotechnology firm that uses proprietary microdose array print (MAP) platform technology to develop therapeutics. The company is focusing on the development of therapeutic indications for patients with progressive myopia and age-related near vision impairment, as well as other eye-related problems. It also has a drug named MicroLine in the pipeline, which, if it passes clinical trials, will help the improvement of near vision in people with presbyopia.

Another drug under development is MicroPine, which is in Phase III clinical development and will help people with pediatric myopia progression. The firm has already signed a deal with Bausch Health Ireland Limited to develop and sell MicroPine in the United States and Canada. It is placed third on our list of 10 best biotech stocks under $6 in 2021. Out of the hedge funds being tracked by Insider Monkey, Chicago-based Fairpointe Capital holds the most shares in the firm – 209,526 – worth more than $1.2 million.

2. MediWound Ltd. (NASDAQ: MDWD)

Number of Hedge Fund Holders: 2
Price as of April 19, 2021: $4.91 per share

MediWound Ltd. (NASDAQ: MDWD) is an Israel-based company that concentrates on the development and manufacture of therapeutics based on a patented proteolytic enzyme technology. These therapeutics are used to treat severe burns, chronic and other wounds. One of the drugs made by the firm, called NexoBrid, is used for the removal of eschar, a dead or damaged tissue in adults. MediWound also makes EscharEx, a drug that treats chronic and other wounds and is currently in advanced clinical trials.

MediWound Ltd. was founded in 2000 and is placed second on our list of 10 best biotech stocks under $6 in 2021. In December 2020, the firm entered into an agreement with a UAE company for the marketing and selling of NexoBrid in the Middle Eastern market. The regulatory approval for the drug that treats severe burns is expected to be granted within a year. At the end of the fourth quarter of 2020, 2 hedge funds in the database of Insider Monkey held stakes worth $2.5 million in the firm, the same as in the preceding quarter having stakes worth $2.4 million.

1. Amarin Corporation plc (NASDAQ: AMRN)

Number of Hedge Fund Holders: 24
Price as of April 19, 2021: $5.04

Amarin Corporation plc (NASDAQ: AMRN) is an Ireland-based company that develops and sells medicines for the treatment of cardiovascular disease. One of the products that the company offers is the drug Vascepa, a prescription grade omega-3 fatty acid that competes against similar drugs made by bigger biotech firms. Amarin sells the medicines it makes to wholesale dealers and pharmacy providers. It was founded in 1989 and is placed first on our list of 10 best biotech stocks under $6 in 2021.

The firm is in partnership with Mochida Pharmaceutical Co., Ltd. to develop and sell drug products based on Vascepa. The Irish firm posted an annual revenue of more than $600 million in December 2020. Amarin was previously known as Ethical Holdings plc but changed the name to Amarin Corporation plc in 1999. Out of the hedge funds being tracked by Insider Monkey, New York-based Baker Bros. Advisors hold the most shares in the firm – 27.9 million – worth more than $136 million. Eversept Partners was second with shares worth $78 million.

You can also take a peek at 10 Best Biotech Stocks To Buy For 2021, and Top 10 Best Freelancing Platforms and Websites for 2021.

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