In this article, we are going to take a closer look at five best biotech stocks to buy under $20. For a broader list of stocks and a more detailed analysis on the biotech industry, head over to 13 best biotech stocks to buy under $20.
5. Cogent Biosciences Inc (NASDAQ:COGT)
Price: $6.59
Nr of Hedge Funds Shareholders: 33
Cogent Biosciences Inc (NASDAQ:COGT) ranks fifth on our list of best biotech stocks to buy under $20. The company’s lead candidate is bezuclastinib, a selective tyrosine kinase inhibitor, which is studied for the treatment of systemic mastocytosis, a blood disorder that results in a build-up of too many mast cells. In December, the company presented data from one of its studies of bezuclastinib, which although showed an improvement, failed to differentiate bezuclastinib from Ayvakit, an existing on-market drug for mastocytosis. This year, Cogent Biosciences Inc (NASDAQ:COGT) plans to continue its trials on bezuclastinib in patients with mastocytosis, as well as, those suffering from Gastrointestinal Stromal Tumors.
4. Iovance Biotherapeutics Inc (NASDAQ:IOVA)
Price: $15.70
Nr of Hedge Funds Shareholders: 34
Iovance Biotherapeutics Inc (NASDAQ:IOVA) is focused on developing tumor infiltrating lymphocyte therapy for treatment of cancer. The company’s approach aims to harness the human immune system to recognize and attack cancer cells. At the end of December, the FDA placed a clinical hold on Iovance Biotherapeutics Inc (NASDAQ:IOVA) trial for its cell therapy in lung cancer patients after a patient death, but earlier this month the company announced that the hold had been lifted. The same therapy is also trialed for melanoma and Iovance Biotherapeutics assured that the clinical hold will not have an impact on this or other studies.
Among the top shareholders of Iovance Biotherapeutics Inc (NASDAQ:IOVA) are MHR Fund Management, led by Mark Rachesky, and Joseph Edelman’s Perceptive Advisors, which own 20 million shares and 11.98 million shares, according to their last 13F filings.
3. Travere Therapeutics Inc (NASDAQ:TVTX)
Price: $8.66
Nr of Hedge Funds Shareholders: 36
Travere Therapeutics Inc (NASDAQ:TVTX) is a biopharmaceutical company that aims to identify therapies for rare diseases. Its lead candidate is Filspari (sparsentan), a kidney drug to treat primary immunoglobulin A nephropathy. The company’s stock suffered a blow in September, on the back of disappointing results from its PROTECT study. The drug failed to reach statistical significance in kidney function outcomes. Nevertheless, the company said that the drug did hit statistical significance to be reviewed by EU regulators. In December, Travere Therapeutics Inc (NASDAQ:TVTX) announced plans to lay off 20% of its workforce and to further cut costs to ensure it has a sufficient cash position to sustain its operations until 2028. In 2023, Travere Therapeutics Inc (NASDAQ:TVTX) recorded sales of $127.50 million, up from $98 million a year earlier.
At the end of December, there were 36 funds in our database with holdings in Travere Therapeutics Inc (NASDAQ:TVTX), down by one over the quarter.
2. Amylyx Pharmaceuticals Inc (NASDAQ:AMLX)
Price: $3.36
Nr of Hedge Funds Shareholders: 36
Amylyx Pharmaceuticals Inc (NASDAQ:AMLX) saw Andreas Halvorsen’s Viking Global and Steve Cohen’s Point72 Asset Management among its top shareholders as of the end of December, with each fund holding 2.96 million shares and 2.75 million shares, respectively. Amylyx Pharmaceuticals Inc (NASDAQ:AMLX)’s work is centered around neurodegenerative diseases. Its leading product, AMX0035 for the treatment of amyothropic lateral sclerosis (ALS), was approved by the US FDA under the trade name RELYVRIO in September 2022 and had previously been approved in Canada under the name ALBRIOZA. However, in October 2023, the European Medicines Agency confirmed its previously-issued negative opinion on the drug.
On March 8, the company’s stock took an 82% dive, following negative results from Phase 3 trial of AMX0035. The drug did not meet primary or secondary endpoints. Amylyx Pharmaceuticals Inc (NASDAQ:AMLX) plans to continue to engage with regulators and the ALS community to discuss the results and make decisions on the next steps, including a potential withdrawal of the drug from the market.
1. Roivant Sciences Ltd (NASDAQ:ROIV)
Price: $10.70
Nr of Hedge Funds Shareholders: 55
Last but not least, Roivant Sciences Ltd (NASDAQ:ROIV) leads the list of best biotech stocks to buy under $20, with 55 funds tracked by Insider Monkey having disclosed long positions in the company as of the end of December, up by 11 over the quarter. Among these investors, Daniel Gold’s QVT Financial is the top shareholder with a $1.26 billion position containing 112.54 million shares. Other renowned investors bullish on Roivant Sciences Ltd (NASDAQ:ROIV) are Andreas Halvorsen’s Viking Global, Julian Baker and Felix Baker’s Baker Bros. Advisors, and David Rosen’s Rubric Capital Management.
Roivant Sciences Ltd (NASDAQ:ROIV) was founded by former Republican Presidential candidate Vivek Ramaswamy. The company is developing drugs and builds subsidiary biotech companies, such as Immunovant and Dermavant. For the last reported quarter, Roivant Sciences Ltd (NASDAQ:ROIV) posted a net loss of $0.21 per share, beating the consensus estimate of $0.27, and its revenue of $37.14 million was also higher than expected.
