5. Royalty Pharma Plc (NASDAQ: RPRX)
Royalty Pharma Plc (NASDAQ: RPRX) ranks fifth among the best cheap biotech stocks to buy now, thanks to its unique business model centered on acquiring and financing biopharmaceutical royalties. Rather than developing drugs itself, Royalty Pharma provides funding to biotechnology innovators and pharmaceutical companies in exchange for a share of future revenue streams.
This strategy has allowed the company to build one of the most diversified royalty portfolios in the biotech sector. Analysts have recently taken note of the company’s strong financial performance. TD Cowen raised its price target to $50 while maintaining a Buy rating, citing the firm’s differentiated business model and the continued expansion of the global biopharma royalty market.
Goldman Sachs also raised its price target to $51, noting that the company’s portfolio receipts and forward guidance exceeded expectations. Royalty Pharma expects royalty revenue to grow between 3% and 8% year over year in 2026, with long-term top-line growth projected to exceed 10%.
With roughly $3.5 billion in available financial capacity, the company remains well positioned to pursue new royalty acquisitions and partnerships with biotech innovators.
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