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. 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. 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. 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, 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 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.
6. Vir Biotechnology, Inc. (NASDAQ:VIR)
Vir Biotechnology, Inc. (NASDAQ:VIR) is one of the best low priced biotech stocks to invest in. On April 13, Vir Biotechnology, Inc. (NASDAQ:VIR) announced that the first patient had been dosed in one of three expansion cohorts in the Phase 1 trial evaluating VIR-5500, a prostate-specific membrane antigen (PSMA)-targeted, PRO-XTEN® dual-masked T-cell engager (TCE) for metastatic prostate cancer. The company stated that the Phase 1 trial measures the safety and efficacy of VIR-5500 monotherapy in late-line mCRPC, and of VIR-5500 in combination with an androgen receptor pathway inhibitor (ARPI) in early-line mCRPC and mHSPC.
Marianne De Backer, M.Sc., Ph.D., MBA, Chief Executive Officer, Vir Biotechnology, Inc., stated that the initiation of the VIR-5500 expansion cohorts highlights the considerable momentum behind the program and the enthusiasm seen across the clinical community. De Backer further stated that the company is encouraged by the promising anti-tumor activity shown in the Phase 1 data announced earlier this year and is looking forward to collaborating with Astellas after closing of the transaction to explore VIR-5500’s potential to make a meaningful difference across the spectrum of metastatic prostate cancer.
Vir Biotechnology, Inc. is a clinical-stage immunology company focused on combining immunologic insights with cutting-edge technologies for the treatment and prevention of serious infectious diseases.
5. ADMA Biologics Inc. (NASDAQ:ADMA)
ADMA Biologics Inc. (NASDAQ:ADMA) is one of the best low priced biotech stocks to invest in. Mizuho cut the price target on ADMA Biologics Inc. (NASDAQ:ADMA) to $24 from $30 on April 13, maintaining an Outperform rating on the shares. The firm cut estimates and price targets for several stocks under its medical devices and diagnostics coverage ahead of Q1 earnings from the group.
ADMA Biologics Inc. also received a rating update from Cantor Fitzgerald on March 25. The firm downgraded the stock to Neutral from Overweight, without assigning a price target. It spoke with a number of investors after a short report’s claim that ADMA Biologics Inc. is boosting Asceniv revenues through channel stuffing, and stated that investors are disappointed over the company’s response and lack of direct communication after the report. The firm further contended that although the company put out a statement, they were “hoping to have more specific feedback addressing the direct claims in the report”. The firm also cited the lack of clarity and concerns associated with the increased days’ sales outstanding and accounts receivable for the downgrade.
ADMA Biologics Inc. is a biopharmaceutical company that manufactures, markets, and develops specialty plasma-derived biologics. Its operations are divided into the following business segments: ADMA BioManufacturing and Plasma Collection Center.
4. Nurix Therapeutics, Inc. (NASDAQ:NRIX)
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is one of the best low priced biotech stocks to invest in. Wells Fargo cut the price target on Nurix Therapeutics, Inc. (NASDAQ:NRIX) to $28 from $29 on April 9, maintaining an Overweight rating on the shares and stating that although management is continuing execution on bexdeg’s chronic lymphocytic leukemia trials with some modest updates expected at EHA, Wells believes bexdeg’s opportunity in immunology and inflammation remains underappreciated. The firm also stated that it sees data from ONC’s BTKdeg BGB-16673 for chronic spontaneous urticaria in the first half of 2026 as a potential upside catalyst.
Nurix Therapeutics, Inc. also received a rating update from Stifel on April 8, with the firm bringing the price target on the stock down to $34 from $35 while maintaining a Buy rating on the shares. The rating update came after the company reported a GAAP net loss wider than the firm’s and consensus estimates, which was driven primarily by the recognition of lower-than-expected collaborative revenue.
Nurix Therapeutics, Inc. is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes innovative small molecules and antibody therapies as a novel treatment approach for inflammatory conditions, cancer, and other challenging diseases.
3. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Relay Therapeutics, Inc. (NASDAQ:RLAY) is one of the best low priced biotech stocks to invest in. On April 13, JonesResearch initiated coverage of Relay Therapeutics, Inc. (NASDAQ:RLAY) with a Hold rating and $18 price target. The firm stated that it has a bullish outlook for the company’s pipeline and zovegalisib’s prospects, and cited valuation for the Hold rating following the stock’s recent strength.
For additional perspective, Relay Therapeutics, Inc. announced in its fiscal Q4 and full year 2025 results that as of December 31, 2025, its cash, cash equivalents, and investments totaled $554.5 million, compared to approximately $781.3 million as of December 31, 2024. The company anticipates its current cash, cash equivalents, and investments to be sufficient to fund its operating expenses and capital expenditure requirements into 2029. Relay Therapeutics, Inc. also reported that revenue for fiscal Q4 2025 came up to $7.0 million, compared to $0 for the fourth quarter of 2024. Revenue for the full year 2025 was $15.4 million, compared to $10.0 million for the full year 2024.
Relay Therapeutics, Inc. 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. Biohaven Ltd. (NYSE:BHVN)
Biohaven Ltd. (NYSE:BHVN) is one of the best low priced biotech stocks to invest in. On April 13, Canaccord initiated coverage of Biohaven Ltd. (NYSE:BHVN) with a Buy rating and set a $21 price target on the stock. The firm told investors in a research note that the company is in the process of developing novel therapeutics for obesity, immunology, neuroscience, and oncology indications. Canaccord views the stock as undervalued based on the company’s opakalim opportunity alone, and recommends buying the shares into the focal epilepsy readout, which the firm sees as presenting “significant upside potential.”
Biohaven Ltd. also received a rating update from Citi on April 2, with the firm lifting the price target on the stock to $17 from $14 while maintaining a Buy rating on the shares. The firm told investors that it sees an attractive risk/reward at current share levels into the company’s 2026 catalysts. It also said that it sees the recent competitor data in focal epilepsy to be very positive for the company’s Phase 3 opakalim trial, which has a readout in the second half of 2026.
Biohaven Ltd. is a global clinical-stage biopharmaceutical company involved in the discovery, development, and commercialization of therapies for people living with neurological and neuropsychiatric diseases.
1. Ocular Therapeutix Inc. (NASDAQ:OCUL)
Ocular Therapeutix Inc. (NASDAQ:OCUL) is one of the best low priced biotech stocks to invest in. Ocular Therapeutix Inc. (NASDAQ:OCUL) announced on April 13 additional positive Week 52 data from the SOL-1 Phase 3 superiority trial of AXPAXLI (also known as OTX-TKI), which is the company’s investigational product candidate for the treatment of wet age-related macular degeneration (wet AMD).
The company reported that the new SOL-1 post-hoc analyses, presented at the 14th Annual Vit-Buckle Society (VBS) Meeting, reinforce the superior durability, strong sustained disease control, and generally well-tolerated safety seen with AXPAXLI in SOL-1. It added that AXPAXLI demonstrated robust CSFT control with a median time of 39 weeks and 46 weeks to ≥30 and ≥75 uM increases from Week 8. In addition, it stated that drug particles are no longer visible in all AXPAXLI subjects with a vitreous floater AE.
Ocular Therapeutix Inc. stated that the subjects who were treated with AXPAXLI were generally able to maintain loading phase visual acuity gains up to Week 52 across quartile subgroups based on BCVA at screening. The company also said that it is on track to submit an NDA based on SOL-1 alone, which is subject to planned formal discussions with the U.S. FDA, and is consistent with recent FDA public commentary.
Ocular Therapeutix Inc. is a biopharmaceutical company that develops and commercializes therapies for conditions and diseases related to the eye. The company’s product pipeline includes Dextenza, OTX-TP, and OTX-TIC.
READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.
Hedge Fund Resource Center