10 Cheap Biotech Stocks to Invest in Now

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1. Roivant Sciences Ltd. (NASDAQ:ROIV)

P/E Ratio: 1.89 

Roivant Sciences Ltd. (NASDAQ:ROIV) is a biopharmaceutical company focused on developing innovative medicines and technologies and tops the list for being the cheapest biotech stock to buy. It uses a unique “hub-and-spoke” model, creating subsidiary companies, or “Vants,” each dedicated to specific therapeutic areas. The company identifies overlooked drug candidates and advances them through clinical trials and commercialization. The company targets markets in immunology, oncology, hematology, and dermatology.

Roivant Sciences Ltd. (NASDAQ:ROIV) reported strong financial results for the third quarter ended December 31, 2023, with a net income of $5.1 billion, compared to a net loss of $384.9 million in the same quarter of the previous year. The company had $6.7 billion in consolidated cash, cash equivalents, and restricted cash as of December 31, 2023. VTAMA generated $20.7 million in net product revenue for the quarter, with a 28.5% gross-to-net yield.

The company’s financial position improved significantly, mainly due to the sale of Telavant to Roche for $7.1 billion upfront, plus an additional $150 million in potential milestone payments. This sale resulted in a gain of approximately $5.3 billion, strengthening Roivant Sciences Ltd. (NASDAQ:ROIV)’s balance sheet and providing resources for future research and development. Revenue growth was also fueled by the increasing adoption of VTAMA, with over 300,000 prescriptions written by about 14,000 unique prescribers since its launch.

As of Q3 2024, 50 hedge funds held stakes in the company as tracked by the Insider Monkey database. The largest stakeholder in the company was QVT Financial with stakes worth $759.2 million.

Overall, ROIV ranks first among the 10 cheapest biotech stocks to buy now. While we acknowledge the potential of biotech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ROIV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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