8 Oversold Biotech Stocks to Invest In Now

In this article, we will be taking a look at the 8 Oversold Biotech Stocks to Invest In Now.

On February 5, J.P. Morgan revealed major themes that are expected to affect healthcare in 2026, emphasizing a resurgence of interest in the biopharma sector. After a period of relative peace, mergers and acquisitions are picking up speed again, which is mainly due to an urgent problem: the patents on numerous well-known medications are about to expire. Major pharmaceutical corporations are actively seeking agreements to bolster their pipelines and maintain long-term growth as cheaper generics threaten income streams.

The sentiment of the market as a whole is being affected by this change. Particularly with regard to smaller biopharma companies with robust research pipelines and obvious value potential, investors are growing more enthusiastic. At the same time, businesses that combine cutting-edge treatments with data-driven innovation are drawing funding due to the increasing confluence of biotechnology and digital health. Opportunities are opening up for investors who are prepared to get intimately involved in the industry, as increased deal activity is anticipated throughout 2026 and a number of significant clinical milestones are drawing near.

Biotech is currently going through a brief hiatus, according to Eli Casdin, CEO of Casdin Capital, even though the industry is operating in one of the strongest economic settings in recent years. Although the start of the year has not been as strong as it was last year, underlying activity is still strong, with over $225 billion in mergers and acquisitions supporting pricing stability. Investors are looking for the next big thing, he said, and the current stage is experimental.

By 2030, patent expirations are expected to affect about $200 billion in pharmaceutical income, which would be a significant shift for the sector. Dealmaking is encouraged by pressure on big pharmaceutical companies to reinvest their more than $1 trillion in available funds. Although it supplements rather than replaces the biological underpinnings of drug research, artificial intelligence is also becoming more and more important, improving productivity and creativity.

With that said, let’s take a look at the oversold stocks.

Our Methodology 

For our methodology, we screened biotech stocks with an RSI below 40 and an upside potential of at least 15%. From the filtered list, we selected stocks with recent news and developments and then ranked them in ascending order based on their upside potential.

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).

Here is our list of the 8 oversold biotech stocks to invest in now.

8. Maze Therapeutics, Inc. (NASDAQ:MAZE)

Price Target Upside: 106.48%  

Maze Therapeutics, Inc. (NASDAQ:MAZE) is one of the oversold stocks on our list.

TheFly reported on April 14 that Truist Securities maintained its Buy rating on MAZE while reducing its price target from $68 to $64. The revision follows the company’s recent 10-K report, with the firm adjusting its expense projections and updating share count estimates to account for pre-funded warrants currently outstanding.

Last month, on March 25, Maze Therapeutics, Inc. released its fourth-quarter and full-year 2025 results, outlining financial performance and key clinical developments. The company reported cash, cash equivalents, and marketable securities of $360.0 million as of December 31, 2025, compared to $196.8 million a year earlier, with funding expected to support operations into 2028. Research and development expenses totaled $27.6 million for the quarter and $108.4 million for the year, while general and administrative costs reached $10.5 million and $34.5 million, respectively.

The corporation also reported that its net loss was $34.6 million for the quarter and $131.1 million for the full year. Maze also shared positive Phase 2 data for MZE829, showing a 35.6% reduction in proteinuria at week 12, with stronger responses in certain subgroups. Additionally, the company advanced its pipeline, including plans for Phase 2 trials of MZE782 and progress on MZE001, supported by a $20 million milestone payment.

Maze Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing small-molecule precision medicines for kidney and metabolic diseases. It uses human genetics and data-driven approaches to identify and target disease-causing biological pathways.

7. Immutep Limited (NASDAQ:IMMP)

Price Target Upside: 139.85%  

Immutep Limited (NASDAQ:IMMP) is among the oversold stocks to invest in now.

TheFly reported on April 15 that  IMMP announced that the U.S. Food and Drug Administration granted Orphan Drug Designation to eftilagimod alfa (efti) for the treatment of Soft Tissue Sarcoma, which is a rare cancer with limited treatment options. The designation is intended to support development of therapies for diseases affecting fewer than 200,000 patients in the United States and may provide incentives such as regulatory assistance, fee reductions, tax benefits, and potential market exclusivity after approval.

The decision was supported by data from the Phase II EFTISARC-NEO study, where 38 evaluable patients showed a median tumour hyalinization/fibrosis rate of 51.5%, exceeding the predefined 35% goal and historical results of around 15% with radiotherapy alone. The study also showed immune activation consistent with the drug’s mechanism and maintained a favorable safety profile without delaying surgery.

Additionally, talking about developments, earlier on March 19, Immutep Limited announced that the single ascending dose phase of its Phase I trial for IMP761, a first-in-class LAG-3 agonist for autoimmune conditions, was completed. Doses reached 14 mg/kg, with the study showing good tolerability and no safety issues or dose-limiting toxic effects observed.

Immutep Limited is a clinical-stage biotechnology company developing LAG-3–based immunotherapies for cancer and autoimmune diseases. It focuses on immune system modulation using its lead candidate eftilagimod alfa and has a pipeline of oncology and immunology drugs.

6. Wave Life Sciences Ltd. (NASDAQ:WVE)

Price Target Upside: 247.13%  

Wave Life Sciences Ltd. (NASDAQ:WVE) is one of the oversold stocks to invest in.

TheFly reported on April 14 that H.C. Wainwright reduced its price target on WVE from $30 to $18 while maintaining a Buy rating. The firm argued that recent market reaction may be excessive and potentially misreads the therapeutic promise of WVE-007, noting that lower baseline body mass indices could have limited the measurable effect of the INHBE/ALK7 pathway.

In a separate movement, on April 15, Wave Life Sciences Ltd. announced that its board approved a plan to move its parent company’s legal domicile from Singapore to the United States through a redomiciliation process. Under the proposal, existing shares would be exchanged one-for-one into shares of a newly formed Delaware-based parent entity, which would become the top holding company of the group while maintaining its Nasdaq listing under the same ticker.

The company noted that most of its operations, headquarters, leadership, workforce, and research and manufacturing infrastructure are already based in the United States. The change is intended to simplify corporate structure, reduce regulatory and administrative burdens, and lower compliance costs tied to operating across multiple jurisdictions. The firm expects to continue reporting in U.S. dollars and under U.S. GAAP and remain subject to SEC and Nasdaq requirements. Completion is subject to shareholder approval and clearance from the Singapore High Court, with execution targeted for mid-2026.

Wave Life Sciences Ltd. is a clinical-stage biotechnology company developing RNA-based medicines using its PRISM platform. It targets genetic, rare, and common diseases, including obesity, muscular dystrophy, and neurodegenerative disorders, by leveraging RNA editing, silencing, and splicing technologies.

5. Cadrenal Therapeutics, Inc. (NASDAQ:CVKD)

Price Target Upside: 378.93%  

Cadrenal Therapeutics, Inc. (NASDAQ:CVKD) is among the oversold biotech stocks to invest in now.

TheFly reported on April 7 that H.C. Wainwright reduced its price target on CVKD from $32 to $13 while maintaining a Buy rating. The adjustment reflects updated assumptions around share count and financing requirements, along with the inclusion of CAD-1005 in the firm’s valuation model. The company also provided a recent update noting continued advancement of CAD-1005, including completion of its End-of-Phase 2 meeting with the U.S. Food and Drug Administration to define a potential Phase 3 registrational pathway.

This analyst activity follows Cadrenal Therapeutics, Inc.’s March 31 announcement of its fourth-quarter and full-year 2025 financial results, which provided critical context for the updated price target, along with a corporate update on its CAD-1005 program for heparin-induced thrombocytopenia and its broader 12-LOX inhibitor platform. The company reported continued progress, including completion of an End-of-Phase 2 meeting with the U.S. FDA on March 26, 2026, to define a potential Phase 3 registrational pathway.

Phase 2 data showed fewer thrombotic events in patients receiving CAD-1005 compared to placebo, with more than a 25% absolute reduction observed on top of standard anticoagulation therapy. Research and development expenses were $0.7 million for the quarter, general and administrative expenses were $2.4 million, and net loss totaled $3.0 million. Cash and cash equivalents stood at $4.0 million, with financing options under evaluation.

Cadrenal Therapeutics, Inc. is a late-stage biopharmaceutical company developing novel anticoagulant and anti-thrombotic therapies for life-threatening immune and cardiovascular conditions, including heparin-induced thrombocytopenia and chronic kidney disease-related clotting disorders.

4. Akari Therapeutics, plc (NASDAQ:AKTX)

Price Target Upside: 477.59%  

Akari Therapeutics, plc (NASDAQ:AKTX) is among the oversold stocks to invest in.

TheFly reported on April 8 that Maxim Group downgraded AKTX from Buy to Hold and did not assign a price target. The firm pointed to increased financing risk as a key concern, noting ongoing capital requirements and continued pressure on the stock following a ratio change implemented on March 31. It also highlighted a recent selloff after the company’s partnership with WuXi XDC, stating that investor sentiment has been affected by funding uncertainty. With shares trading near record lows and the company’s market value under $5 million, the firm viewed the risk profile as elevated, given a difficult capital-raising environment.

Talking about the WuXi XDC partnership, it was done on April 6. The partnership is intended to accelerate the progress of AKTX-101, the company’s lead antibody-drug conjugate program targeting metastatic urothelial cancer. PH1 is designed as a spliceosome-modulating payload that disrupts RNA splicing in cancer cells while also triggering immune system activity.

Preclinical findings have shown strong tumor reduction and instances of complete remission compared to existing ADC approaches. Akari plans to advance AKTX-101 into a Phase 1 study, with initiation expected in late 2026 or early 2027 pending regulatory clearance.

Akari Therapeutics, plc (NASDAQ:AKTX) is a clinical-stage oncology biotechnology company developing next-generation antibody-drug conjugates (ADCs) using its proprietary RNA splicing–targeting payload platform to treat solid tumors.

3. Dogwood Therapeutics, Inc. (NASDAQ:DWTX)

Price Target Upside: 713.25%  

Dogwood Therapeutics, Inc. (NASDAQ:DWTX) is one of the oversold biotech stocks on this list.

TheFly reported on April 15 that DWTX announced that the U.S. Food and Drug Administration cleared its Investigational New Drug application for SP16, an intravenous candidate being developed for chemotherapy-induced pain and peripheral neuropathy.

The therapy is designed to act through anti-inflammatory pathways by lowering cytokines such as IL-6, IL-8, IL-1β, and TNF-alpha, while also supporting tissue repair through activation of signaling proteins involved in growth and survival. The company, together with Serpin Pharma, expects enrollment in a Phase 1b trial to begin in mid-2026, with funding fully supported by a $2.5 million National Cancer Institute grant. SP16 is intended to address significant unmet needs in CIPPN, a condition affecting a large portion of chemotherapy patients and often causing long-lasting numbness, tingling, and pain.

Separately, earlier on March 18, Dogwood Therapeutics, Inc. reported its fourth-quarter and full-year 2025 financial performance. Research and development spending in the fourth quarter remained unchanged at $2.3 million compared with the prior year period, while general and administrative expenses declined to $1.5 million from $5.2 million due mainly to lower one-time transaction costs linked to the 2024 business combination.

The business said that its net loss for the quarter was $3.8 million, or $0.26 per share, improving from $8.2 million a year earlier. For the full year, R&D expenses rose to $21.8 million, driven largely by SP16 licensing costs and Halneuron clinical development, while net loss widened to $35.5 million. Cash totaled $6.5 million at year-end, with additional financing extending the runway into late 2026.

Dogwood Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing non-opioid therapies for pain and neuropathic disorders, including chemotherapy-induced neuropathic pain. Its lead candidate, Halneuron, targets sodium channels to reduce pain signaling.

2. Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH)

Price Target Upside: 1,488.24%  

Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is one of the oversold stocks to invest in.

TheFly reported on April 9 that Maxim Group downgraded RVPH from Buy to Hold. The firm pointed to ongoing weakness in the share price following the company’s one-for-20 reverse stock split completed on March 9. It noted that although recent funding may help advance a second Phase 3 study of brilaroxazine, additional capital will still be required. With the stock trading below the $1.00 NASDAQ compliance level, the analyst also highlighted heightened delisting risk alongside continued financing concerns as key factors behind the downgrade.

Earlier on March 30, Reviva Pharmaceuticals Holdings, Inc. reported its full-year 2025 financial results along with key business and development updates. The company posted a net loss of approximately $19.9 million, or $5.48 per share, compared with a $29.9 million loss in 2024. Cash and cash equivalents totaled about $14.4 million as of December 31, 2025.

During 2025 and early 2026, RVPH completed multiple equity offerings, including $10.0 million raised in March 2026, with total cash expected to support operations into Q1 2027. The update also highlighted regulatory feedback from the FDA recommending a second Phase 3 trial for brilaroxazine in schizophrenia, alongside continued advancement of RECOVER-2 planned for mid-2026. Additional progress included patent expansion efforts, completed manufacturing and nonclinical studies, and ongoing

Reviva Pharmaceuticals Holdings, Inc. is a late-stage biopharmaceutical company developing therapies for central nervous system, inflammatory, respiratory, and cardiometabolic diseases. Its lead drug candidate, brilaroxazine, targets schizophrenia and other neuropsychiatric disorders.

1. Enlivex Ltd. (NASDAQ:ENLV)

Price Target Upside: 2,226.93% 

Enlivex Ltd. (NASDAQ:ENLV) is one of the oversold stocks to invest in now.

TheFly reported on April 7 that H.C. Wainwright increased its price target on ENLV from $13 to $20 while maintaining a Buy rating. The firm noted that the company has completed its debt financing, which is expected to provide sufficient resources to support the ongoing clinical development of its Allocetra program.

On March 23, Enlivex Ltd. announced that the U.S. Food and Drug Administration cleared its Investigational New Drug application for Allocetra™, an immunotherapy being developed for moderate-to-severe age-related primary knee osteoarthritis. The clearance allows the company to begin a global, randomized, double-blind, placebo-controlled Phase 2b study evaluating intra-articular injections of Allocetra in patients with the condition.

The trial is designed to assess improvements in pain, physical function, quality of life, and mobility compared with placebo at multiple time points over several months. Knee osteoarthritis affects tens of millions of patients in the United States and is expected to rise significantly over the coming decades. The company highlighted prior clinical evidence showing durable and meaningful symptom improvement lasting at least six months, particularly in older patient groups, supporting further evaluation of Allocetra as a potential treatment for this large unmet medical need.

Enlivex Ltd. is a clinical-stage biotechnology company developing macrophage reprogramming immunotherapies, including its lead cell therapy, Allocetra, aimed at treating sepsis, osteoarthritis, and other severe inflammatory and immune-mediated diseases.

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