In this article, we will take a look at the 5 best biotech penny stocks to buy now. To see more such companies, go directly to 11 Best Biotech Penny Stocks to Buy Now.
5. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 24
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) ranks 5th in our list of the best biotech penny stocks to buy now according to hedge funds. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is up about 40% year to date through July 31. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) recently announced that the Defense Advanced Research Projects Agency (DARPA), which is operating under the U.S. Department of Defense, awarded it a four-year contract worth up to $18 million. In May Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) posted Q1 results. GAAP EPS in the period came in at -$0.11, missing estimates by $0.02. Revenue in the quarter fell 52.1% year over year to $80.7 million, surpassing estimates by $8.96 million.
Out of the 943 hedge funds tracked by Insider Monkey, 24 hedge funds reported owning stakes in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA).
4. Altimmune, Inc. (NASDAQ:ALT)
Number of Hedge Fund Holders: 25
Altimmune, Inc. (NASDAQ:ALT) is in the spotlight as the company is among several biotech companies working on weight loss drugs. Altimmune, Inc. (NASDAQ:ALT) is expected to announce results of a Phase 2 study of its obesity treatment in the last quarter of 2023.
Insider Monkey’s database of 943 hedge funds shows that 25 funds had stakes in Altimmune, Inc. (NASDAQ:ALT) as of the end of the first quarter of 2023.
In May Altimmune, Inc. (NASDAQ:ALT) posted first quarter results. GAAP EPS in the period came in at -$0.40 beating estimates by $0.08. Cash, cash equivalents and short-term investments as of the end of March came in at $165.8 million.
3. Mersana Therapeutics, Inc. (NASDAQ:MRSN)
Number of Hedge Fund Holders: 28
Mersana Therapeutics, Inc. (NASDAQ:MRSN) was losing value in late July after the company’s ovarian cancer treatment failed a pivotal trial. Baird downgraded Mersana Therapeutics, Inc. (NASDAQ:MRSN) to Neutral from Overweight.
Insider Monkey’s database of 943 hedge funds shows that 28 funds reported having stakes in Mersana Therapeutics, Inc. (NASDAQ:MRSN). The most notable stakeholder of Mersana Therapeutics, Inc. (NASDAQ:MRSN) was Samuel Isaly’s OrbiMed Advisors with a $37 million stake in the company. The second biggest hedge fund stakeholder of Mersana Therapeutics, Inc. (NASDAQ:MRSN) during this period was Kurt Von Emster’s VenBio Select Advisor which had a $31 million stake.
2. Nuvation Bio Inc. (NYSE:NUVB)
Number of Hedge Fund Holders: 29
Nuvation Bio Inc. (NYSE:NUVB) is a clinical stage biotech company that is working on treatments for oncology. In May Nuvation Bio Inc. (NYSE:NUVB) posted Q1 results. GAAP EPS in the first quarter came in at -$0.10.
As of the end of March Nuvation Bio Inc. (NYSE:NUVB) had cash, cash equivalents, and marketable securities of $646.6 million. As of the end of the first quarter of 2023, 29 hedge funds tracked by Insider Monkey were long Nuvation Bio Inc. (NYSE:NUVB).
1. Annexon, Inc. (NASDAQ:ANNX)
Number of Hedge Fund Holders: 32
California-based biopharmaceutical company Annexon, Inc. (NASDAQ:ANNX) makes treatments for autoimmune, neurodegenerative, and ophthalmic disorders. Annexon, Inc. (NASDAQ:ANNX) tops our list of the best biotech penny stocks since 32 hedge funds in Insider Monkey’s database held stakes in the company as of the end of the first quarter of 2023. Annexon, Inc. (NASDAQ:ANNX) got hammered in May after the company’s candidate for geographic atrophy failed to meet its primary endpoint. BofA downgraded Annexon, Inc. (NASDAQ:ANNX) to Neutral from Buy.
The biggest stakeholder of Annexon, Inc. (NASDAQ:ANNX) as of the end of the first quarter was Phill Gross and Robert Atchinson’s Adage Capital Management which had a $13.6 million stake in the company.
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