13 Best Biotech Penny Stocks to Buy According to Hedge Funds

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1. Geron Corp. (NASDAQ:GERN)

Share Price as of April 14: $1.38

Number of Hedge Fund Holders: 46

Geron Corp. (NASDAQ:GERN) is a commercial-stage biopharmaceutical company that develops therapeutics products for oncology. It offers RYTELO (imetelstat) which is a telomerase inhibitor for the treatment of adult patients with low to intermediate-1 risk myelodysplastic syndromes with transfusion-dependent anemia.

RYTELO was approved in the US in June 2024 for specific lower-risk MDS patients. In Q4 2024, which was RYTELO’s second full quarter on the market, the candidate generated $47.5 million in net product revenue. Since launch through year-end 2024, revenue reached $76.5 million. Payers covering about 80% of US-insured lives have favorable coverage for RYTELO. The estimated US market for eligible lower-risk MDS patients in 2025 is ~15,400.

RYTELO has received a positive opinion in Europe for certain MDS patients, with a final EU approval decision expected in H1 2025, potentially leading to a 2026 EU launch. Geron Corp. (NASDAQ:GERN)ended 2024 with ~$503 million in cash and expects to reach profitability without further funding based on RYTELO’s sales growth.

ClearBridge Small Cap Growth Strategy stated the following regarding Geron Corporation (NASDAQ:GERN) in its Q1 2025 investor letter:

“We continued to generate a number of compelling new ideas, adding five new investments that we still held at quarter end: Glaukos, Rocket Lab USA, Karman Holdings (through its IPO), Archrock, Hims & Hers and Geron Corporation (NASDAQ:GERN).

Geron is a biotechnology company with a commercialized drug launching to treat blood cancer. Its product is newly entering a sizable market with broad applicability for patients who cycle through a variety of treatments throughout the course of the disease, allowing for a potentially larger revenue opportunity than currently appreciated by the market.”

While we acknowledge the growth potential of Geron Corp. (NASDAQ:GERN), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GERN 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 30 Best Stocks to Buy Now According to Billionaires.

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