The 5 Best Biotech Stocks Under $10
For many investors, low share price means big opportunity—especially in a sector like biotech that could take off at any time. A few well-chosen biotech stocks under $10 could turn into huge gainers for your portfolio in just a short time. It begs the question: are there any biotechs with low share prices and high upside languishing in the market right now? Almost definitely. You just need to know where to look.
The best biotech stocks under $10 are the ones that have a long runway and a long lead time. These are companies with drugs in early stages of clinical trials. Moreover, they’re companies focused in emerging segments of the biotech industry. The market isn’t paying them much attention right now because what they’re doing isn’t moving the needle… yet. Given enough time, even small biotech companies have big potential.
Here’s a look at five of the best biotech stocks under $10 right now. Get familiar with them and their value proposition, because you might not be able to get them for under $10 per share for long.
Best Biotech Stocks Under $10
Aptinyx (Nasdaq: APTX) is a micro cap stock valued at $200 million, making it closer to a penny stock than anything else. Nevertheless, it’s a name that’s starting to creep onto analysts’ radar. This little company has some very appealing drugs in its pipeline, dedicated to central nervous system therapies.
At the forefront is NYX-2925. This therapy focuses on painful diabetic peripheral neuropathy and Fibromyalgia. The reason investors are so interested? NYX-2925 has been fast-tracked by the FDA. There’s significant promise in the Stage 1 and 2 trials, which could mean a quick Stage 3 and a marketable drug.
Another therapy, NYX-458, is currently ongoing mid-stage trials. It’s designed to treat cognitive impairments leading to dementia and Parkinson’s Disease—and it’s also fast-tracked by the FDA. It’s clear there’s something worth looking at brewing in Aptinyx’s pipeline.
2. Ardelyx, Inc.
Ardelyx, Inc. (Nasdaq: ARDX) is more of a niche biotech play. The company focuses specifically on kidney and Cardiorenal diseases. This is part of the draw—its pipeline comes with a moat. Right now, that pipeline consists of Tenapanor: a treatment for hyperphosphatemia, which is almost universally present in kidney failure patients.
This small biotech has already conducted three Phase 3 clinical trials and is well on its way to a marketable drug. Investors have taken note. The stock has been on a run the last six months, since November 2020. There’s strong momentum behind the company as it gets ready to fill a need in a market that doesn’t have too many competitors vying for a piece of the pie.
3. BioCryst Pharmaceuticals, Inc.
As opposed to biotechs that pursue alternative treatments for common ailments, BioCryst Pharmaceuticals, Inc. (Nasdaq: BCRX) pursues a different approach. The company is a late-stage biotech that focuses on oral drugs for rare and serious diseases. Everything about its business has a moat, which makes is an attractive investment option.
Even more attractive is the fact that this company already has a marketable drug for hereditary angioedema (HAE): ORLADEYO™. This is a solid foundation, but it’s the company’s flu treatment drug that could become more in-demand in the pandemic age. RAPIVAB® could become much more relevant in a world where antiviral cocktails could be the prophylactic for the next pandemic.
4. BioDelivery Sciences International, Inc.
BioDelivery Sciences International, Inc. (Nasdaq: BDSI) focuses on therapies for individuals living with serious and debilitating chronic conditions. The company has been on the downtrend lately, but analyst chatter suggests now might be a good time to buy in the dip. The company already has a good portfolio of drugs marketed to help manage chronic pain and treatment of opioid-induced constipation. Its pipeline is nothing to dismiss, either.
If you’re looking for the real reason to buy into this stock, look at its balance sheet and financial snapshot. BioDelivery Sciences International, Inc. has exceptional revenue and a strong balance sheet, which makes it a standout on this list of companies still working hard toward profitability.
5. Viking Therapeutics
Looking for a stock that’s a little more mainstream, with better media coverage? Check out Viking Therapeutics (Nasdaq: VKTX). Analysts love this stock and haven’t stopped bringing it up since the start of the year. It currently has buy ratings across the board. Many see it as a company that’s just one clinical trial away from a major marketable drug.
The positive sentiment comes from its niche and drug pipeline. The company focuses on metabolic and endocrine disorders, and has a strong pipeline of drugs focused on muscle wasting, type 2 diabetes, hypertriglyceridemia and others. While it’s been flat for several years, the stock stands poised for a breakout—especially has clinical trials progress into later stages.
Investing in Biotech Stocks
Are you interested in emerging therapeutic technologies? Neuro drugs to reduce cognitive decline? Drugs for rare and under-studied diseases? These five biotech stocks go beyond the mainstream to provide investment opportunities that could take off in time. The best part? These biotech stocks under $10 are affordable and attainable. Adding them to your portfolio not only adds diversity to your holdings—they could add major profits too.
Please note that the market is always in flux. The securities listed above were recommended while trading at a share price of under $10, but may have since gained in value.
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