In this article, we will look at the 8 Best Low Priced Biotech Stocks to Invest In.
On April 16, Fundstrat’s Tom Lee appeared on CNBC’s ‘Closing Bell’ to talk about what to expect from equity markets going forward. He was of the view that although it might counter what the viewers might think, he believes that the stock market is in a better position today than earlier this year when it made its all-time high. He cited several reasons for this, with the first being that the US stock market can handle a surge in oil while it hurts other countries. We have also seen earnings go up, and are thus now comfortable that the war is actually stimulating the economy.
READ ALSO: 7 Most Undervalued Small Cap Stocks to Buy Right Now AND 7 Most Undervalued Retail Stocks to Invest In Now.
Thirdly, looking back at the history of oil spikes, Lee says that the impact on core is less than we thought, and so there might be less of an inflation shock coming. He added that the stocks can go back to the 7,300, which is his base case for this year in our three-phase market, before we might see a larger drawdown.
With these broader market trends in view, let’s look at the best low priced biotech stocks to invest in.
Our Methodology
We used stock screeners to make a list of biotech stocks under $20 and picked 8 stocks with the highest number of hedge fund holders, as of Q4 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 recorded on April 16.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Best Low Priced Biotech Stocks to Invest In
8. Generate Biomedicines, Inc. (NASDAQ:GENB)
Generate Biomedicines, Inc. (NASDAQ:GENB) is one of the best low priced biotech stocks to invest in. On April 13, H.C. Wainwright initiated coverage of Generate Biomedicines, Inc. (NASDAQ:GENB) with a Buy rating, setting a $16 price target. The firm told investors in a research note that the stock has fallen over 20% even as GB-0895 advanced into two registrational severe uncontrolled asthma studies with a “product angle that could matter commercially”. The firm added that it believes the company’s setup is better than the stock implies.
Generate Biomedicines, Inc. (NASDAQ:GENB) also received a rating update from Cantor Fitzgerald on March 24. The firm initiated coverage of the stock with an Overweight rating, telling investors in a research note that the company is developing GB-0895, which is a long-acting anti-TSLP antibody for asthma and COPD discovered through its computational protein engineering platform. It is viewed as a largely de-risked, high-reward asset with blockbuster potential and a 65% probability of success in asthma.
Generate Biomedicines, Inc. (NASDAQ:GENB) is a clinical-stage generative biology company pioneering the AI revolution in biotechnology and drug design and development.
7. Mesoblast Limited (NASDAQ:MESO)
Mesoblast Limited (NASDAQ:MESO) is one of the best low priced biotech stocks to invest in. Mesoblast Limited (NASDAQ:MESO) announced on April 14 that it has acquired an exclusive worldwide license to a patented chimeric antigen receptor (CAR) technology platform for precision-enhanced augmentation of therapeutic mesenchymal lineage stromal cell (MSC) products. The company stated that it plans to employ the engineered CARs to further bolster the effectiveness of the company’s products, aimed at enhancing the target specificity and augmenting the inherent properties of immunomodulation and tissue regeneration.
Management further stated that the company’s MSC technology platforms, which include the first and only FDA-approved MSC product in the United States, are designed to treat tissue-specific inflammatory diseases because of their inherent homing capabilities and immunomodulatory properties. It added that the primary objective of genetically engineering CAR constructs into MSCs is to considerably enhance targeted homing to inflamed tissue, resulting in greater potency.
Silviu Itescu, Chief Executive of Mesoblast Limited (NASDAQ:MESO), stated that the innovative genetic modification technology fits “well” with the company’s strategy of expanding its market leadership by developing products with increased efficacy and new target indications.
Mesoblast Limited (NASDAQ:MESO) is a biopharmaceutical company involved in the research, development, and marketing of a mesenchymal lineage adult stem cell technology platform. The company’s medicines target cardiovascular diseases, oncology and hematology, spine orthopedic disorders, immune-mediated, and inflammatory diseases.
