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. (NASDAQ:MAZE) 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. (NASDAQ:MAZE) 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 (NASDAQ:IMMP) 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 (NASDAQ:IMMP) 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. (NASDAQ:WVE) 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. (NASDAQ:WVE) 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.
While we acknowledge the potential of WVE 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 WVE and that has 100x upside potential, check out our report about the cheapest AI stock.
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