In this article, we will take a look at the 5 oversold biotech stocks to buy. To read our analysis of the recent trends and market activity, you can go to the 10 Oversold Biotech Stocks to Buy.
5. Protagonist Therapeutics, Inc. (NASDAQ:PTGX)
14-day RSI as of July 25: 26.79
Number of Hedge Fund Holders: 23
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is a clinical-stage biopharmaceutical company with a proprietary technology platform focused on discovering and developing peptide-based new chemical entities for treatment of disease areas with significant unmet medical needs.
Rusfertide is the lead product candidate of Protagonist Therapeutics, Inc. (NASDAQ:PTGX) currently in a global Phase 3 stage of development. The global Phase 3 VERIFY study of Rusfertide in polycythemia vera, a type of blood cancer, is ongoing.
On July 4, Protagonist Therapeutics, Inc. (NASDAQ:PTGX) announced positive topline results from the Phase 2b FRONTIER 1 clinical trial evaluating JNJ-2113 for patients with moderate to severe plaque psoriasis.
The drug was discovered using the discovery platform of Protagonist Therapeutics, Inc. (NASDAQ:PTGX) and is being further developed by Johnson & Johnson (NYSE:JNJ) which holds exclusive rights to develop JNJ-2113 in Phase 2 clinical trials and beyond. Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is eligible for up to $855 million in various future milestone payments including royalties on potential worldwide sales.
4. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
14-day RSI as of July 25: 26.22
Number of Hedge Fund Holders: 29
Novato, California-based Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is a is a biopharmaceutical company focused on the development of novel products for the treatment of serious rare and ultra-rare genetic diseases.
The portfolio of Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) includes four commercial products: DOJOLVI® for patients with molecularly confirmed long-chain fatty acid oxidation disorders, MEPSEVII® for Mucopolysaccharidosis VII, CRYSVITA® for hypophosphatemic disorders, and EVKEEZA® for Homozygous Familial Hypercholesterolemia.
On May 4, Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) released its financial results for Q1 2023. Its revenue increased by 26% y-o-y to $100.5 million while net loss increased by 8% y-o-y to $164 million.
On June 7, Citigroup raised the price target on Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) shares to $133 from $130 and maintained a ‘Buy’ rating. The target price represents a potential upside of 219.94% based on the share price on July 25.
3. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
14-day RSI as of July 25: 25.76
Number of Hedge Fund Holders: 38
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is a clinical-stage biotechnology company focused on discovery, design, and delivery of breakthrough therapies for cancer patients, including lung cancer, and a pipeline of novel therapeutics targeting the genetic and immunological drivers of cancer.
On July 21, Mirati Therapeutics, Inc. (NASDAQ:MRTX) announced that the European Medicine Agency’s Committee for Medicinal Products for Human Use (CHMP) issued a negative opinion on the Conditional Marketing Authorisation Application for its FDA-approved drug, KRAZATI® (adagrasib) for treatment of patients with KRASG12C -mutated advanced non-small cell lung cancer. The company intends to request a formal re-examination of its application.
On July 24, Barclays analyst Gena Wang lowered the price target on Mirati Therapeutics, Inc. (NASDAQ:MRTX) shares to $71 from $75 and maintained an ‘Overweight’ rating on the shares.
As of Q1 2023, 38 hedge funds owned shares of Mirati Therapeutics, Inc. (NASDAQ:MRTX), valued at $786 million. Kurt Von Emster’s VenBio Select Advisor was its largest shareholder with ownership of 5.6 million shares valued at $207 million.
2. Vir Biotechnology, Inc. (NASDAQ:VIR)
14-day RSI as of July 25: 21.41
Number of Hedge Fund Holders: 22
San Francisco, California-based Vir Biotechnology, Inc. (NASDAQ:VIR) is a commercial-stage immunology company focused on the development of therapies to treat and prevent serious infectious diseases. Its current development pipeline consists of product candidates targeting COVID-19, hepatitis B and D viruses, influenza A and human immunodeficiency virus.
On July 20, Vir Biotechnology, Inc. (NASDAQ:VIR) announced that the Phase 2 Prevention of Illness Due to Influenza A (PENINSULA) trial evaluating VIR-2482 for the prevention of symptomatic influenza A illness did not meet primary or secondary efficacy endpoints.
Following the announcement, Barclays lowered the price target for Vir Biotechnology, Inc. (NASDAQ:VIR) shares to $41 from $59 while maintaining an ‘Overweight’ rating. The price target represents a potential upside of 250.25% based on the share price on July 25.
As of Q1 2023, Vir Biotechnology, Inc. (NASDAQ:VIR) shares were owned by 22 of the 943 hedge funds tracked by Insider Monkey, with a total value of $161 million. Notable hedge fund investors included Point72 Asset Management, Avidity Partners Management, and Renaissance Technologies, among others.
1. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
14-day RSI as of July 25: 10.83
Number of Hedge Fund Holders: 42
Waltham, Massachusetts-based Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a biopharmaceutical company focused on the development of therapies for treatment of debilitating diseases by controlling complement, part of the body’s immune system. The company is exploring programs across ophthalmology, nephrology, hematology, and neurology by targeting the C3, the only target in the complement cascade that addresses all three pathways that can drive disease.
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) received FDA approval of SYFOVRE™ (pegcetacoplan injection) in February 2023 for the treatment of geographic atrophy. EMPAVELI, for the treatment of Paroxysmal Nocturnal Hemoglobinuria, is the other commercial product of the company.
On May 4, Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) released its financial results for Q1 2023. Its revenue increased by 212% y-o-y to $45 million while net loss increased by 30% y-o-y to $178 million.
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) ranks #1 on our list of 10 oversold biotech stocks to buy based on the 14-day RSI of 10.83. The shares of the company were also widely owned by hedge funds as of Q1 2023 with 42 of the 934 prominent hedge funds tracked by Insider Monkey holding its shares valued at $2.0 billion.
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