In this article, we will take a look at 9 Oversold Biotech Stocks to Invest In.
Biotech companies are making a solid comeback following an extended slump as investors shift their focus back to value and healthcare. Lower interest rates, increased M&A activity, and decreasing policy uncertainties have brought back confidence in the once-depleted sector. As an example, the iShares Biotechnology ETF has gained around 26% year-to-date.
According to Oppenheimer’s Q3 report on M&A activity, biopharma market sentiment improved throughout the quarter, with acquisition activity expected to increase through the end of 2025. The quarter witnessed $38 billion spent on M&A transactions, with $20 billion of those transactions occurring in September alone. Moreover, owing largely to early-stage assets in the cardiovascular-metabolic, immunology, and oncology fields, clinical-stage acquisitions enjoyed their best quarter since late 2023.
Additionally, the FDA greenlit 45 new medication applications during the third quarter, a significant uptick compared to earlier periods. Accelerated approvals, primarily in the fields of gene and cell therapy, as well as cutting-edge biologics aimed at cancer and rare diseases, were the main drivers of this surge.
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Our Methodology
To come up with our list of the Most Oversold Biotech Stocks to Invest In we used stock screeners to extract a list of biotechnology companies with a Relative Strength Index (RSI) under 40. Next, we settled on stocks with an upside potential of more than 20% and that were popular among elite hedge funds in second quarter of 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9. Atai Beckley NV (NASDAQ:ATAI)
Analyst Upside: 234.47%
RSI Value: 31.39
Number of Hedge Fund Holders: 17
Atai Beckley NV (NASDAQ:ATAI) ranks among the most oversold biotech stocks to invest in. H.C. Wainwright reaffirmed its Buy rating and $15 price target for Atai Beckley NV (NASDAQ:ATAI) on November 14 following the company’s third-quarter report. The firm highlighted a number of significant events from the report, including the company’s BPL-003 receiving Breakthrough Therapy Designation (BTD) in treatment-resistant depression and the conclusion of the merger between Atai Life Sciences and Beckley Psytech.
Atai Beckley NV (NASDAQ:ATAI) reported solid findings from the open-label extension study in its Phase 2b clinical trial for BPL-003. The study found that administering a 12 mg dose of BPL-003 eight weeks after the original dose resulted in accelerated antidepressant effects that lasted up to eight weeks.
In addition, the report covered Atai Beckley NV (NASDAQ:ATAI) shareholders approving the acquisition of Beckley Psytech Limited and the company’s anticipated redomiciliation in Delaware. In that context, the company also filed a proposal for the resale of up to 5.3 million shares in connection with its acquisition of Beckley Psytech.
Atai Beckley NV (NASDAQ:ATAI), headquartered in the Netherlands, is a clinical-stage biopharmaceutical company developing innovative treatments for mental health disorders, including depression, anxiety, and substance use disorders.
8. Novavax, Inc. (NASDAQ:NVAX)
Analyst Upside: 73.88%
RSI Value: 32.01
Number of Hedge Fund Holders: 24
Novavax, Inc. (NASDAQ:NVAX) ranks among the most oversold biotech stocks to invest in. Novavax, Inc. (NASDAQ:NVAX) announced its third-quarter 2025 financial results on November 6, emphasizing the company’s continuous strategic shift from a direct COVID-19 commercial operation to an R&D-focused company, especially in partnership with Sanofi.
For the third quarter, Novavax, Inc. (NASDAQ:NVAX) reported total revenue of $70 million, an 18% drop from $85 million during the same period the previous year. Meanwhile, licensing, royalties, and other revenue rose from $43 million to $57 million as product sales fell sharply from $41 million to $13 million year-over-year.
Additionally, the company expressed confidence in its partnership strategy and royalty channels by raising its full-year 2025 adjusted revenue projection to $1,040–$1,060 million. Novavax, Inc. (NASDAQ:NVAX) further projects $610 million in Nuvaxovid product sales, and $35–45 million in adjusted supply sales.
More recently, on November 10, B. Riley Securities analyst Mayank Mamtani reiterated his Buy rating for Novavax, Inc. (NASDAQ:NVAX), while reducing its price target from $18 to $16.
Novavax, Inc. (NASDAQ:NVAX) is a biotechnology company that develops and commercializes innovative vaccines to prevent serious infectious diseases. Its products are protein-based, utilizing recombinant nanoparticle technology and its proprietary Matrix-M adjuvant to enhance the immune response.
7. CRISPR Therapeutics AG (NASDAQ:CRSP)
Analyst Upside: 46.15%
RSI Value: 35.24
Number of Hedge Fund Holders: 26
CRISPR Therapeutics AG (NASDAQ:CRSP) ranks among the most oversold biotech stocks to invest in. Following the company’s third-quarter financial results, Oppenheimer reaffirmed its Outperform rating and $95 price target for CRISPR Therapeutics AG (NASDAQ:CRSP) on November 11. CRISPR Therapeutics AG (NASDAQ:CRSP) reported a lower-than-anticipated loss of $1.17 per share against the expected $1.26 per share, largely due to reduced R&D spending of $59 million compared to the expected $88 million.
Casgevy, the company’s gene treatment, continued its slow launch, costing $57 million in collaboration expenses for the quarter, with partner Vertex reporting an increase in momentum for its debut.
Oppenheimer emphasized the advancements in CRISPR’s in vivo initiatives, highlighting the comprehensive findings from the Phase 1 study of CTX310 that were presented at the American Heart Association (AHA) meeting and subsequently published in the New England Journal of Medicine.
Oppenheimer also noted CRISPR’s SyNTase editing technology, which appears in the CTX460 data, has considerable potential and enhances the company’s existing strategies and in vivo initiatives.
CRISPR Therapeutics AG (NASDAQ:CRSP) is a leader in gene-editing technology that uses its proprietary gene sequencing platform to develop precise treatments for diseases that require DNA modification.
6. Agios Pharmaceuticals, Inc. (NASDAQ:AGIO)
Analyst Upside: 23.49%
RSI Value: 27.86
Number of Hedge Fund Holders: 29
Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) ranks among the most oversold biotech stocks to invest in. On November 20, Leerink Partners upgraded Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) from Market Perform to Outperform with a $34 price target. The rating upgrade comes despite Agios’ conflicting topline data for its Phase 3 RISE UP trial assessing mitapivat in sickle cell disease (SCD).
The trial reached its primary goal, with 40.6% of patients receiving mitapivat demonstrating a 1.0 g/dL or higher increase in hemoglobin levels, in comparison to 2.9% in the placebo group. The medication, however, did not significantly lower the annualized rate of sickle cell pain episodes.
That said, Leerink Partners sees the approaching thalassemia PDUFA date of December 7 as a near-term catalyst that is not reflected in current stock prices. The firm pointed out that this route might entail a commercialization partnership in important markets and possible approval for a wider audience compared to rival luspatercept.
Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) is a commercial-stage biopharmaceutical company focused on therapies for rare diseases, particularly in cellular metabolism. Its flagship product, PYRUKYND (mitapivat), targets hemolytic anemias, including sickle cell disease and thalassemia.
5. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Analyst Upside: 94.52%
RSI Value: 30.03
Number of Hedge Fund Holders: 33
Intellia Therapeutics, Inc. (NASDAQ:NTLA) ranks among the most oversold biotech stocks to invest in. On November 11, Jones Trading dropped Intellia Therapeutics, Inc. (NASDAQ:NTLA) from Buy to Hold. The downgrade came after Intellia announced on November 6, along with its third-quarter 2025 earnings, that a next-z treated patient who had originally met Hy’s Law criteria had died.
The downgrade also comes after Dr. Garcia and Jones Trading convened a key opinion leader call on November 5 to discuss the patient who met Hy’s Law criteria. The discussion took place prior to the patient’s death being announced the following day.
Baird, noting the FDA’s hold on the NTLA-2001 treatment as a major factor, also lowered its price target for the company’s shares to $9 while maintaining a Neutral rating. Given the competitive environment in the ATTR and HAE markets, the firm states that commercial adoption of Intellia’s programs may be difficult even if they gain regulatory approval.
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a biotech company at the forefront of CRISPR-Cas9 gene-editing technology, developing cutting-edge treatments for both in vivo and ex vivo applications. Its main initiative, NTLA-2001, aims to treat transthyretin amyloidosis, a disease that is currently incurable.
4. uniQure N.V. (NASDAQ:QURE)
Analyst Upside: 125.10%
RSI Value: 33.60
Number of Hedge Fund Holders: 36
uniQure N.V. (NASDAQ:QURE) ranks among the most oversold biotech stocks to invest in. William Blair reaffirmed its Market Perform rating for uniQure N.V. (NASDAQ:QURE) on November 11 while the company anticipates comments from regulators regarding its AMT-130 therapy. William Blair suggests that lobbyists and the medical community might put pressure on regulators to negotiate a quick route to BLA submission, citing the strong clinical results released last month and the early interest from patients and physicians for the Huntington’s disease medication.
The rating comes at a time when uniQure N.V. (NASDAQ:QURE) is dealing with serious AMT-130 regulatory issues. The results from uniQure’s Phase 1/2 studies, which were previously thought to be acceptable for a Biologics License Application (BLA), are no longer regarded as sufficient by the U.S. Food and Drug Administration (FDA).
uniQure N.V. (NASDAQ:QURE) anticipates receiving final minutes within 30 days from the pre-BLA meeting and intends to proactively engage with the FDA to find an approach toward the accelerated approval of AMT-130.
uniQure N.V. (NASDAQ:QURE) specializes in gene therapy by developing one-time gene therapies aimed at potentially curing genetic and serious diseases.
3. Legend Biotech Corporation (NASDAQ:LEGN)
Analyst Upside: 161.80%
RSI Value: 28.62
Number of Hedge Fund Holders: 39
Legend Biotech Corporation (NASDAQ:LEGN) ranks among the most oversold biotech stocks to invest in. On November 12, William Blair analyst Sami Corwin reiterated his Hold rating for Legend Biotech Corporation (NASDAQ:LEGN) shares. The analyst mentioned the company’s Carvykti, which has seen a significant boost in revenue, owing to its acceptance in third-line settings. However, this growth fell slightly short of the analysts’ estimates.
Legend Biotech Corporation (NASDAQ:LEGN) has overcome previous manufacturing capacity concerns, is currently fulfilling market demand, and plans additional expansion to significantly boost dosing capacity by 2026. Despite these encouraging advances, the amended Carvykti label, which includes new safety warnings, poses potential issues.
On the same day as the analyst coverage, Legend Biotech Corporation (NASDAQ:LEGN) published its third-quarter earnings for 2025, which were mixed and fell short of market forecasts. The company reported earnings per share of -$0.05, slightly lower than the expected -$0.044. Meanwhile, revenue fell short of the expected $274.72 million, coming in at $272.33 million.
Legend Biotech Corporation (NASDAQ:LEGN) is a clinical-stage company that develops, discovers, manufactures, and commercializes novel therapies for oncology and other indications.
2. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Analyst Upside: 68.64%
RSI Value: 37.30
Number of Hedge Fund Holders: 44
Apellis Pharmaceuticals Inc. (NASDAQ:APLS) ranks among the most oversold biotech stocks to invest in. On November 3, Mizuho maintained its Neutral rating for Apellis Pharmaceuticals Inc. (NASDAQ:APLS) and reduced its price target from $24 to $19. Despite encouraging early results from Empaveli’s launch in C3G/IC-MPGN indications, Mizuho attributed the revision largely to ongoing growth issues with Syfovre, Apellis’ medication for eye disease.
In Q3 2025, Syfovre’s revenue totaled $150.9 million, a minor decrease from $152.0 million in Q3 2024. Despite this minor fall, the company reported a 4% quarter-over-quarter gain in injections. Apellis Pharmaceuticals Inc. (NASDAQ:APLS) stated that SYFOVRE retains over 60% market share in the GA treatment area, with 52% of new patient starts in Q3 2025.
Mizuho has cut its Syfovre revenue projections, now projecting a peak annual revenue of about $800 million, 25–30% lower than the consensus estimates.
Apellis Pharmaceuticals Inc. (NASDAQ:APLS) is a commercial-stage biopharmaceutical company that discovers, develops, and commercializes novel therapeutic compounds to treat diseases with high unmet needs.
1. Soleno Therapeutics Inc. (NASDAQ:SLNO)
Analyst Upside: 153.93%
RSI Value: 34.22
Number of Hedge Fund Holders: 52
Soleno Therapeutics, Inc. (NASDAQ:SLNO) ranks among the most oversold biotech stocks to invest in. Soleno Therapeutics, Inc. (NASDAQ:SLNO) reported third-quarter adjusted earnings of $0.47 per share on November 4, significantly exceeding analyst projections of $0.05 per share. Revenue also came in significantly higher than the consensus expectations at $66 million.
Despite the strong results, the company’s stocks tumbled that day. Investor concerns regarding discontinuation rates for VYKAT XR, the company’s treatment for hyperphagia (extreme hunger) in patients with Prader-Willi syndrome (PWS) seem to be the main cause of the company’s sharp stock decline.
In a similar vein, Piper Sandler had reaffirmed an Overweight rating and $145 price target for Soleno Therapeutics, Inc. (NASDAQ:SLNO) back in early October, implying that the stock had been oversold due to recent safety issues. According to the firm, concerns over the safety of the company’s VYKAT XR medication, which were raised in the FDA Adverse Event Reporting System (FAERS) database, and a brief thesis published in August are what have led to the company’s stock declines.
However, Piper Sandler maintained its optimism regarding VYKAT XR’s ongoing launch and saw the stock drop as a “compelling buying opportunity” for investors.
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics to treat rare diseases.
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