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.
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. (NASDAQ:VIR), 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. (NASDAQ:VIR) is a clinical-stage immunology company focused on combining immunologic insights with cutting-edge technologies for the treatment and prevention of serious infectious diseases.
While we acknowledge the potential of VIR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VIR and that has 100x upside potential, check out our report about the cheapest AI stock.
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