In this article, we discuss the 5 best biotech stocks under $10. If you want to read our detailed analysis of the biotech stocks and the industry’s outlook, go directly to see the 10 Best Biotech Stocks Under $10.
5. Mersana Therapeutics, Inc. (NASDAQ: MRSN)
Number of Hedge Fund Holders: 28
Mersana Therapeutics, Inc. (NASDAQ: MRSN) ranks fifth on our list of the best biotech stocks under $10. It is a biotechnology company that specializes in the discovery and development of antibody-drug conjugate (ADC) therapies for cancer patients. The company has headquarters in Massachusetts, U.S.
In August, H.C. Wainwright initiated its coverage on Mersana Therapeutics, Inc. (NASDAQ: MRSN) with a ‘Buy’ rating and a $28 price target, and sees 115% upside. The firm likes the company’s Dolaflexin platform that is meant to enhance the efficacy and safety of ADCs. In Q2 2021, Mersana Therapeutics, Inc. (NASDAQ: MRSN) reported Research and Development expenses of $32 million, up from $15.4 million during the same period last year. At the end of the quarter, the company had $227.4 million in cash and equivalents.
As of Q2 2021, 28 hedge funds tracked by Insider Monkey have positions in Mersana Therapeutics, Inc. (NASDAQ: MRSN), up from 25 in the previous quarter. The total value of these stakes is $294.7 million. VenBio Select Advisor is the company’s largest shareholder, with 6.8 million shares, worth $92.3 million.
4. Infinity Pharmaceuticals, Inc. (NASDAQ: INFI)
Number of Hedge Fund Holders: 15
Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) is an innovative and clinical-stage biopharmaceutical company that develops and delivers medicines for the treatment of rare and serious diseases. The company uses scientific expertise to develop novel small molecule drugs that target emerging disease pathways. Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) stands fourth on our list of the best biotech stocks under $10.
In August, JPMorgan upgraded Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) to ‘Overweight’ with a $6 price target. The firm’s analyst, Anupam Rama noted the prospects of the company’s oral drug, which is currently undergoing mid-stage studies in urothelial cancer. In Q2 2021, Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) posted a GAAP EPS of -$0.13, beating the estimate by $0.01. The company reported revenue of $0.51 million, presenting a 41.7% year-over-year growth. For FY21, Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) expects a net loss in the range of $40 million to $50 million. Since the beginning of the year, Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) delivered a 74.8% return to shareholders, while its 12-month returns stood at 231.7%.
As of Q2 2021, 15 hedge funds tracked by Insider Monkey have positions in Infinity Pharmaceuticals, Inc. (NASDAQ: INFI), worth $60.1 million. The number of hedge funds remained the same in the previous quarter. Oaktree Capital Management is the company’s largest shareholder, with over 25 million shares, worth $256.7 million.
3. BioDelivery Sciences International, Inc. (NASDAQ: BDSI)
Number of Hedge Fund Holders: 14
BioDelivery Sciences International, Inc. (NASDAQ: BDSI) ranks third on our list of the best biotech stocks under $10. It is a rapidly growing specialty biotechnology company that manufactures and markets pharmaceuticals, vaccines, and drug products. The company plans to explore therapies for serious chronic conditions in the future.
In August, BioDelivery Sciences International, Inc. (NASDAQ: BDSI) was granted $24 million from the U.S. Department of Veteran Affairs for the pharmaceutical preparation, which would extend till 2026. In Q2 2021, BioDelivery Sciences International, Inc. (NASDAQ: BDSI) posted an EPS of $0.12, beating the estimates by $0.05. The company generated revenue of $41.4 million, presenting a 13.3% year-over-year growth. Recently, HC Wainwright boosted its price target on BioDelivery Sciences International, Inc. (NASDAQ: BDSI), to $6.00 from $5.50, while keeping a ‘Buy’ rating on the shares. BioDelivery Sciences International, Inc. (NASDAQ: BDSI) soared 7% in the past six months.
With 9.5 million shares, worth $$34.1 million, Deerfield Management is the company’s leading shareholder. As of Q2 2021, 14 hedge funds tracked by Insider Monkey have positions in BioDelivery Sciences International, Inc. (NASDAQ: BDSI), worth $53.1 million. In the previous quarter, 15 hedge funds held stakes in the company, valued at $63.9 million.
2. Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE)
Number of Hedge Fund Holders: 16
Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE) is a clinical-stage biotechnology company that develops enzyme therapies for rare metabolic diseases. The company was founded in 2013 and has headquarters in Texas, U.S. It ranks second on our list of the best biotech stocks under $10.
Earlier this year, Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE) signed an agreement with a Swedish pharmaceutical company, Immedica Pharma AB to commercialize pegzilarginase for the treatment of Arginase 1 deficiency in Europe. The medicine is currently in phase 3 of development. At the end of Q2, Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE) had available cash and cash equivalents of $130.4 million. In August, Evercore ISI initiated its coverage on Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE) with a ‘Buy’ rating and a $20 price target.
Of the 873 hedge funds tracked by Insider Monkey, 16 hedge funds have positions in Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE) as of Q2 2021. The total value of these stakes is $139.9 million. This number of hedge funds is compared with 18 hedge funds having stakes in the company, valued at $153.2 million. Samuel Isaly’s OrbiMed Advisors is the company’s leading shareholder with over 4 million shares, worth $27.9 million.
1. Amarin Corporation plc (NASDAQ: AMRN)
Number of Hedge Fund Holders: 21
Amarin Corporation plc (NASDAQ: AMRN) tops our list of the best biotech stocks under $10. It is a rapidly growing, innovative biotech company that focuses on developing and commercializing cost-effective therapies to improve patients’ health. The company’s lead product, VASCEPA, is made to address cardiovascular risk for patients globally.
Recently, SVB Leerink initiated its coverage on Amarin Corporation plc (NASDAQ: AMRN), with an ‘Outperform’ rating and a $12 price target. The firm’s analyst believes that the company’s VASCEPA will help achieve improved cardiovascular risk outcomes. In Q2 2021, Amarin Corporation plc (NASDAQ: AMRN) posted an EPS of $0.03, beating the consensus by $0.06. The consolidated revenue presented a 14.2% year-over-year growth at $154.4 million. The company plans to launch VASCEPA in Europe (as VAZKEPA) this September, starting from Germany. Currently traded at $5.30, Amarin Corporation plc (NASDAQ: AMRN) gained 29.9% in the last year.
As of Q2 2021, 21 hedge funds tracked by Insider Monkey have positions in Amarin Corporation plc (NASDAQ: AMRN), worth $298.4 million. In the previous quarter, 21 hedge funds held stakes in the company, worth $444.2 million.
You can also take a look at 10 Best Small-Cap Biotech Stocks Under $10 in 2021 and 15 Fastest Growing Biotech Companies in the US
