10 Hot Biotech Stocks Under $5

1. Gossamer Bio, Inc. (NASDAQ:GOSS)

Potential Upside: 604.98%

Number of Hedge Fund Holders: 35

Gossamer Bio, Inc. (NASDAQ:GOSS) is a clinical-stage biopharmaceutical company working on the development of new treatments. The treatments aim to tackle pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The company’s key candidate, seralutinib, is inhaled and targets pathways involved in abnormal cellular growth problems, inflammation, and fibrosis.

Financially, Gossamer Bio, Inc. (NASDAQ:GOSS) ended 2024 with $294.5 million in cash and marketable securities, which gives the company a cash runway into the first half of 2027. R&D expenses rose slightly to $138.5 million for the year, up from $135.3 million in 2023, due to Gossamer’s advancements in late-stage clinical trials. General and administrative expenses dropped to $36.1 million from $38.5 million, emphasizing efficient cost control. Moreover, Gossamer dramatically reduced its net loss to $56.5 million in 2024 from $179.8 million in 2023. These numbers highlight improved financial management and efficiency in operations.

Clinically, Gossamer Bio, Inc. (NASDAQ:GOSS) is advancing seralutinib for both PAH and PH-ILD. The Phase 3 PROSERA trial for PAH is currently enrolling patients, with topline results expected by late 2025. The company will start another Phase 3 trial for PH-ILD in the second half of 2025, which could expand seralutinib’s market reach. Gossamer had a regulatory breakthrough when Japan’s Ministry of Health, Labor and Welfare granted seralutinib Orphan Drug status, boosting its global strategy.

With a strong financial position, multiple advanced trials underway, and upcoming regulatory breakthroughs, Gossamer Bio, Inc. (NASDAQ:GOSS) is emerging as a hot biotech stock for investors to monitor in 2025.

Overall, Gossamer Bio, Inc. (NASDAQ:GOSS) ranks first on our list of the Hot Biotech Stocks Under $5. While we acknowledge the potential of GOSS, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOSS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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