In this article, we discuss the 5 best biotech stocks to buy under $10. If you want to see more stocks in this selection, check out 12 Best Biotech Stocks To Buy Under $10.
05. Ovid Therapeutics Inc. (NASDAQ:OVID)
Number of Hedge Fund Holders as of Q3, 2022: 14
Share Price as of December 19: $1.74
Ovid Therapeutics Inc. (NASDAQ:OVID) is an emerging biotech company that designs therapies for epilepsies, seizure-related disorders, and neurological disorders. This August, the company announced that it is on its way to file with the FDA to run clinical trials for OV329, the company’s novel therapy to treat epilepsy. The company is expected to file for an IND with the FDA in the back half of 2022. Experts believe that the pipeline drug OV-935 indicates increasing revenue potential for Ovid Therapeutics Inc. (NASDAQ:OVID).
On August 29, Citi analyst Yigal Nochomovitz raised his price target on Ovid Therapeutics, Inc. (NASDAQ:OVID) to $2.50 from $2.40 and maintained a Neutral rating on the shares. At the close of Q3 2022, 14 hedge funds were long Ovid Therapeutics Inc. (NASDAQ:OVID) and held stakes worth $42.77 million in the company. Of those, Mark Lampert’s Biotechnology Value Fund was the top shareholder in the company, with stakes worth $12.60 million.
04. ARS Pharmaceuticals, Inc. (NASDAQ:SPRY)
Number of Hedge Fund Holders as of Q3, 2022: 17
Share Price as of December 19: $8.08
ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) is a biotechnology firm that was incorporated in 2015 and is based in San Diego, California. ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) develops ARS-1, a novel intranasal epinephrine spray with absorption technology for patients and their families at-risk of severe allergic reactions to food, medications, and insect bites. Its product includes Neffy, a low-dose intranasal epinephrine nasal spray. On December 13, SVB Securities analyst Roanna Ruiz initiated coverage of ARS Pharmaceuticals with an Outperform rating and a $14 price target. The stock has gained 16.62% value year to date as of December 19. This is compared to the NASDAQ Biotechnology Index, which is down 12.31% year to date.
At the close of Q3 2022, 17 hedge funds were long ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) and held stakes worth $30.64 million in the company. Of those, Samuel Isaly’s OrbiMed Advisors was the top shareholder in the company, with stakes worth $46.15 million.
03. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Number of Hedge Fund Holders as of Q3, 2022: 18
Share Price as of December 19: $4.02
Viking Therapeutics, Inc. (NASDAQ:VKTX) is an American company that focuses on developing therapies for diseases involving the hormonal (endocrine) system and metabolism. The firm targets illnesses such as steatohepatitis, complications from surgery, and diabetes. It is located in San Diego, California.
Viking Therapeutics, Inc. (NASDAQ:VKTX) is developing a metabolic drug VK2735. Its phase-1 results are expected in early 2023. Target indications for VK2735 include NASH, diabetes, and obesity. According to experts, the global nonalcoholic steatohepatitis (NASH) market has the potential to reach up to $35 billion in the coming years. The stock has gained 43.24% value year to date. On December 20, Maxim analyst Naz Rahman raised his price target on Viking Therapeutics, Inc. (NASDAQ:VKTX) to $15 from $10 and kept a Buy rating on the shares.
Here is what Bumbershoot Holdings has to say about Viking Therapeutics, Inc. (NASDAQ:VKTX) in its Q4 2021 investor letter:
“While Viking Therapeutics (NASDAQ:VKTX) was down for the year—we were able to take advantage of a spike in price during February to moderately reduce/hedge our exposure and transfer some of the position over to Ligand Pharmaceuticals (NASDAQ:LGND)—Viking’s former parent company. Ligand still owns nearly 10% of Viking’s shares, to go along with its own compelling growth story. The combined Viking/Ligand position was a positive contributor to performance.”
Israel Englander’s Millennium Management is Viking Therapeutics, Inc. (NASDAQ:VKTX)’s largest investor. It owns 3.1 million shares that are worth $8.4 million. Alongwith Millenium Management, 16 other hedge funds were long ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) at the end of Q3. These funds collectively held stakes worth $33.52 million in the company.
02. Ardelyx, Inc. (NASDAQ:ARDX)
Number of Hedge Fund Holders as of Q3, 2022: 19
Share Price as of December 19: $1.96
Ardelyx, Inc. (NASDAQ:ARDX) is a Waltham, Massachusetts-based biotech company founded in 2007. The company has the distinction of developing and commercializing the first-in-class therapeutic for treating irritable bowel syndrome. Furthermore, the company has therapeutics for treating hyperphosphatemia, hyperkalemia, and metabolic acidosis in the pipeline.
On December 18, Piper Sandler analyst Christopher Raymond remained Overweight rated on Ardelyx, Inc. (NASDAQ:ARDX) shares, with a price target of $8, after FDA informed the company that the Agency needs “a few more weeks” to finalize its response to the company’s appeal of the XPHOZAH CRL issued last year.
In accordance with the company’s contract with HealthCare Royalty Partners (HCR), Ardelyx, Inc. (NASDAQ:ARDX) received a $10 million advance payment in June. The company anticipates receiving another $5 million after its Japanese partner, Kyowa Kirin Corporation (KKC), receives regulatory permission for another drug application next year. In Q3 2022, Ardelyx, Inc. (NASDAQ:ARDX) reported revenue of $4.99 million, reflecting a YoY increase of 325%. The company’s strong fundamentals merit its inclusion in our list of the best biotechnology stocks to invest in.
At the end of the third quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $42.416 million in Ardelyx, Inc. (NASDAQ:ARDX), compared to 16 in the preceding quarter worth $11.256 million.
01. TG Therapeutics, Inc. (NASDAQ:TGTX)
Number of Hedge Fund Holders as of Q3, 2022: 24
Share Price as of December 19: $7.92
Topping our list of 12 best biotech stocks to buy under $10 is TG Therapeutics, Inc. (NASDAQ:TGTX). The company was incorporated in 1993 and is based in New York, New York. TG Therapeutics, Inc. (NASDAQ:TGTX) is a commercial-stage biopharmaceutical company that focuses on the acquisition, development, and commercialization of novel treatments for B-cell malignancies and autoimmune diseases. The company has strategic alliances with LFB Biotechnologies S.A.S; GTC Biotherapeutics; LFB/GTC LLC; Ildong Pharmaceutical Co. Ltd.; and Rhizen Pharmaceuticals, S A.
TG Therapeutics is getting close to meeting its Prescription Drug User Fee Act (PDUFA) goal date of December 28, 2022, for ublituximab to treat relapsing forms of multiple sclerosis (RMS). According to experts, the FDA will approve ublituximab for RMS, and by the end of 2024, sales of the drug might reach $1 billion.
At the close of Q3 2022, 24 hedge funds were long TG Therapeutics, Inc. (NASDAQ:TGTX) and held stakes worth $148.17 million in the company. Of those, Lee Ainslie’s Maverick Capital was the top shareholder in the company, with stakes worth $45.59 million.
You can also take a look at the 12 Most Advanced Countries in Space Technology and Real Estate Investing For Beginners.
