In this article, we discuss the 12 best biotech stocks to buy under $10. If you want to see more stocks in this selection, check out 5 Best Biotech Stocks To Buy Under $10.
The past two years have been challenging for the biotech sector, based on the market performance of biotech equities. Compared to larger stock market indexes, biotechnology indices underperformed. Now it appears as though the tables are turning. Prices for biotech stocks have stabilized, and a rebound is possible. In the middle of June 2022, the biotech stock bear market most likely reached its bottom. According to the Nasdaq Biotech Index (NBI), the sector recovered almost 30% from that low between mid-June and mid-August; however, the upward trend has since slightly slowed. The industry prognosis is nonetheless optimistic for the remainder of the current year and the following year. This is because many biotech companies are in strong financial and strategic positions.
As reported by Bloomberg, several ground-breaking discoveries are in the process and are likely to boost market potential in the specified disease categories. The number of new medicine approvals is expected to increase due to favorable regulatory conditions and an increase in clinical trial submissions to the FDA. The level of innovation has been pretty astounding; discoveries are being made, and new items are reaching the market faster. Good return potential is correlated with attractive stock values. In any case, given its distinct characteristics, the biotech sector ought to be included in diversified investment portfolios. The current stock prices offer an opportunity to add to or start new long-term holdings in the biotech industry.
The sector is likely to be shielded from the general challenges of higher interest rates by increasing M&A activity and a robust innovation pipeline. Experts believe that there is a significant probability that big, cash-rich pharmaceutical corporations will continue to bolster their R&D pipelines as 2022 comes to a conclusion and into 2023. Numerous factors are going to increase mergers and acquisition activity. This year, many biotech businesses have provided encouraging clinical data. The new approvals front has seen a lot of activity from biotech companies.
Currently, the political climate is favorable for the biotech industry. In the US, the largest drug market in the world, the recently approved Inflation Reduction Act in Washington will not impose any price caps on cutting-edge medications. This encourages innovation and stimulates big pharma’s interest in appealing biotech firms. Buyers looking to overcome a patent cliff quickly will be particularly interested in companies that have just launched or are about to launch their first products based on ground-breaking innovations. According to the deals publicized this year, oncology remains the most crucial therapeutic field for potential buyers. Smaller biotech companies have also successfully developed new treatments for schizophrenia and depression in neurology over the past few years.
Photo by Our Methodology:
In order to compile our list of the 12 best biotech stocks under $10 we used overall hedge fund towards biotech stocks that are under $10. Basically, these are the best biotech stocks under $10 to buy according to hedge funds. We also talked about analysts’ ratings, long-term growth potential, and fundamentals while discussing these stocks.
Best Biotech Stocks To Buy Under $10
12. Acurx Pharmaceuticals, Inc. (NASDAQ:ACXP)
Number of Hedge Fund Holders as of Q3, 2022: 2
Share Price as of December 19: $3.83
Acurx Pharmaceuticals, Inc. (NASDAQ:ACXP) was incorporated in 2017 and is based in Staten Island, New York. Acurx Pharmaceuticals, Inc. (NASDAQ:ACXP) is a clinical-stage biopharmaceutical company that develops antibiotics to treat bacterial infections. It’s lead antibiotic candidate is ibezapolstat, a novel mechanism of action that targets the polymerase IIIC enzyme that has completed Phase IIa clinical trial to treat patients with clostridium difficile infections. The company is also developing ACX-375C, a potential oral and parenteral treatment targeting gram-positive bacteria, including methicillin-resistant staphylococcus aureus, vancomycin-resistant enterococcus, and penicillin-resistant streptococcus pneumonia.
On December 19, H.C. Wainwright analyst Ed Arce initiated coverage of Acurx with a Buy rating and a $14 price target. Ibezapolstat’s dual activity “appears to consistently clear CDI rapidly and completely,” Arce tells investors in a research note. Acurx Pharmaceuticals, Inc. (NASDAQ:ACXP) is a clinical-stage biopharmaceutical company focused on developing a new class of antibiotics for infections that have acquired antimicrobial resistance to existing therapies, says the analyst. At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $3.83 million in Acurx Pharmaceuticals, Inc. (NASDAQ:ACXP).
11. Acer Therapeutics Inc. (NASDAQ:ACER)
Number of Hedge Fund Holders as of Q3, 2022: 4
Share Price as of December 19: $3.33
Biotech firm Acer Therapeutics Inc. (NASDAQ:ACER) focuses on the purchase, development, and commercialization of treatments for serious, uncommon, and life-threatening diseases. Its pipeline consists of four clinical-stage candidates, including EDSIVO for the treatment of vascular Ehlers-Danlos Syndrome in individuals with a type III collagen mutation, ACER-001, a sodium phenylbutyrate formulation for the treatment of a variety of inborn metabolic disorders, such as urea cycle disorders and maple syrup urine disease, ACER-801 (osanetant) for the treatment of induced Vasomotor Symptoms, and ACER-2820 (emetine), a host-directed therapy against a variety of infectious diseases, including COVID-19.
On the insider front, we see a clear case of confidence for Acer Therapeutics Inc. (NASDAQ:ACER) stock. On November 30, Acer Therapeutics Inc. (NASDAQ:ACER) announced that it has entered into definitive agreements with its CEO and its Chairman for a private placement of its securities for gross proceeds of $1.5 million. As of December 11, the stock has gained 36% value compared to the NASDAQ biotechnology index, which is down 12.31% year to date. According to Insider Monkey’s Q3 data, Acer Therapeutics Inc. (NASDAQ:ACER) was found in the public stock portfolios of 4 hedge funds, with collective stakes in the company worth $3.33 million.
10. Anixa Biosciences, Inc. (NASDAQ:ANIX)
Number of Hedge Fund Holders as of Q3, 2022: 4
Share Price as of December 19: $3.87
Anixa Biosciences, Inc. (NASDAQ: ANIX) is a biotech company that develops therapies and vaccines to treat unmet and serious oncological and infectious diseases. The company utilizes the latest technological developments to further enhance the efficacy of its treatments. Anixa Biosciences, Inc. (NASDAQ: ANIX) ranks tenth on our list of the best biotech stocks under $10. On December 8, Anixa Biosciences, Inc. (NASDAQ:ANIX) announced the maximum tolerated dose – MTD – has been reached in the Phase 1a trial of its preventative breast cancer vaccine. The stock has gained 34.45% value year to date as of December 20.
As of Q3 2022, 4 hedge funds tracked by Insider Monkey have positions in Anixa Biosciences, Inc. (NASDAQ: ANIX), worth $566,000. The number of hedge funds remained the same in the previous quarter, with a total value of $402,000. Jim Simons’ Renaissance Technologies was the company’s largest shareholder at the end of Q3, with shares worth $281,000.
Just like Thermo Fisher Scientific Inc. (NYSE:TMO), Merck & Co. (NYSE: MRK), and Johnson & Johnson (NYSE:JNJ), Anixa Biosciences, Inc. (NASDAQ:ANIX) is one of the notable biotech stocks gaining investors’ attention in 2022.
09. PDS Biotechnology Corporation (NASDAQ:PDSB)
Number of Hedge Fund Holders as of Q3, 2022: 6
Share Price as of December 19: $9.34
PDS Biotechnology Corporation (NASDAQ:PDSB) is a clinical-stage immunotherapy company. The company is involved in developing and commercializing its proprietary immunotherapy and drug delivery platform technologies for cancer treatment. On November 14, Chardan analyst Geulah Livshits raised his price target on PDS Biotechnology Corporation (NASDAQ:PDSB) to $16 from $15 and kept a Buy rating on the shares post the Q3 results. The stock has gained 10.08% value year to date. The company announced its latest quarter results on November 14, beating the Wall Street expectations for EPS by $0.02 while revenue was in line with market consensus.
At the close of Q3 2022, 6 hedge funds disclosed ownership of stakes in PDS Biotechnology Corporation (NASDAQ:PDSB). These funds held collective stakes of $2.71 million in the company. As of September 30, Two Sigma Advisors is the most prominent shareholder in PDS Biotechnology Corporation (NASDAQ:PDSB) and has stakes worth $1.22 million in the company.
In addition to Thermo Fisher Scientific Inc. (NYSE:TMO), Merck & Co. (NYSE: MRK), and Johnson & Johnson (NYSE:JNJ), analysts and investors are also paying attention to PDS Biotechnology Corporation (NASDAQ:PDSB) amid the company’s long-term growth potential.
08. Aptinyx Inc. (NASDAQ:APTX)
Number of Hedge Fund Holders as of Q3, 2022: 6
Share Price as of December 19: $0.274
Aptinyx Inc. (NASDAQ:APTX) was founded in 2015 and is based in Evanston, Illinois. It is a clinical-stage biopharmaceutical company that focuses on the discovery, development, and commercialization of novel, proprietary, and synthetic small molecules for treating brain and nervous system disorders.
On August 26, H.C. Wainwright analyst Raghuram Selvaraju lowered his price target on Aptinyx Inc. (NASDAQ:APTX) to $1 from $2 and kept a Buy rating on the shares after NYX-2925 failed in fibromyalgia. NYX-458 Phase 2 data remains on track for release in Q1 of 2023, Selvaraju tells investors in a research note.
Jeffrey Diehl’s Adams Street Partners is the largest shareholder of Aptinyx Inc. (NASDAQ:APTX) as of Q3, holding 5.39 million shares worth $1.997 million. The number of hedge funds holding Aptinyx Inc. (NASDAQ:APTX) shares remained the same during Q3 as a total of 6 hedge funds are holding a stake as compared to the same 6 hedge funds in the previous quarter.
07. Agenus Inc. (NASDAQ:AGEN)
Number of Hedge Fund Holders as of Q3, 2022: 12
Share Price as of December 19: $2.39
Agenus Inc. (NASDAQ:AGEN) is a clinical-stage immuno-oncology company based in Lexington, Massachusetts. The company is researching hematological malignancies, solid tumors, multiple myeloma, and viral ARDS.
On December 8, EF Hutton analyst Michael King initiated coverage of Agenus Inc. (NASDAQ:AGEN) with a Buy rating and $8.30 price target and nominated it as his top pick, arguing that the company has “one of the industry’s most productive portfolios of I/O assets,” but is “not getting the credit it deserves.” Many of its antibody peers either have smaller pipelines or less advanced clinical candidates, according to King, who sees Agenus as likely to create significant value as its “prodigious pipeline blossoms over the next 12-24 months.”
Among the hedge funds tracked by Insider Monkey, 12 funds held long positions in Agenus Inc. (NASDAQ:AGEN), compared to 11 funds in the quarter earlier. David Kroin’s Deep Track Capital is the largest stakeholder in the company, with more than 26 million shares worth $53.97 million.
06. Provention Bio, Inc. (NASDAQ:PRVB)
Number of Hedge Fund Holders as of Q3, 2022: 13
Share Price as of December 19: $9.28
Provention Bio, Inc. (NASDAQ:PRVB) is a New Jersey-based clinical-stage biopharmaceutical company focused on the development and commercialization of therapeutics to diagnose and prevent immune-mediated diseases. It is one of the best diabetes stocks to invest in.
On November 19, Chardan analyst Geulah Livshits raised his price target on Provention Bio, Inc. (NASDAQ:PRVB) to $30 from $24 and kept a Buy rating on the shares after teplizumab gained FDA approval as the first treatment to delay the onset of Stage 3 type 1 diabetes in adult and pediatric patients aged eight years and older with stage 2 diabetes. There is “nothing too surprising about the label,” Livshits tells investors in a research note. The analyst adjusted his model to reflect the approval, pricing, and a more conservative penetration for the present based on the higher-than-expected price.
According to Insider Monkey’s data, 13 hedge funds were long Provention Bio, Inc. (NASDAQ:PRVB) at the end of the third quarter of 2022, compared to 12 funds in the prior quarter. John Petry’s Sessa Capital is the largest stakeholder in the company, with 14.8 million shares worth $67 million.
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Disclosure: None. 12 Best Biotech Stocks to Buy Under $10 is originally published on Insider Monkey.