Issue #11

3 Biotech Stocks Under $10 With Breakout Potential

If you're looking to tap into the explosive growth potential of biotech without breaking the bank, this is the newsletter for you. Biotech is a sector where innovation can transform a company—and its stock price—overnight. That’s why we’ve zeroed in on three promising biotech stocks currently trading under $10, each offering a different entry point into the sector.

Here’s what you can expect in this newsletter:

🔹 Prefer a stable, revenue-backed logistics player?
​ 🔹 Willing to bet on early-stage, high-reward biotech breakthroughs?
​ 🔹 Looking for a commercial-stage company with pipeline growth and recent acquisition momentum?

Whether you're a conservative investor seeking steady revenue or a risk-taker chasing transformative upside, these three biotech plays offer compelling opportunities to match your strategy. Let’s dive in.

Cryoport (NASDAQ:CYRX)

Cryoport (NASDAQ: CYRX) is a specialized company providing a comprehensive suite of supply chain solutions for the life sciences industry. Its core focus is on the logistics and storage of temperature-sensitive biological materials, which are crucial for the development and distribution of advanced therapies like cell and gene therapies.

Business Model and Revenue Streams

Cryoport operates a vertically integrated cold chain logistics platform, essential for transporting and storing biological materials at controlled, often cryogenic, temperatures. Its main clients include biopharma companies, research institutions, and reproductive medicine clinics.

Revenue comes from two core segments:

• Life Sciences Services: Offers end-to-end temperature-controlled logistics for clinical trials and therapies, including proprietary shippers, real-time tracking, and analytics.
• Life Sciences Products: Through MVE Biological Solutions, provides cryogenic equipment like freezers, dewars, and vapor shippers for storage and transport.

Cryoport relies on long-term client partnerships, ensuring predictable, recurring revenue. Growth is fueled by the rise of cell and gene therapies, which demand reliable logistics.

Recent Performance and Corporate Developments 📈

Cryoport reported strong results for the second quarter of 2025, demonstrating solid growth across its key business segments.

Q2 2025 Financial Highlights: 💰

• Total Revenue: Total revenue from continuing operations was $45.5 million, a 14% increase year-over-year. This was ahead of analyst expectations.
• Net Earnings & Adjusted EBITDA: Cryoport reported a net income of $105.2 million. Adjusted EBITDA loss improved to $0.9M, down from $5.6M a year ago.
• Life Sciences Services revenue grew 21% YoY; commercial cell and gene therapy revenue rose 33%.
• Cryoport supported 728 clinical trials as of June 30, 2025, up from 684 last year.

Strategic Initiatives and Mergers: 🤝

A key development was the sale of CRYOPDP to DHL in June 2025. This strategic move expanded Cryoport's global reach and allowed it to focus on high-margin core services. The deal also strengthened its balance sheet, raising cash and short-term investments to $426 million.

Path to Profitability and Fair Value 🎯

Cryoport is targeting profitability by expanding in the high-growth cell and gene therapy market and scaling its high-margin services. Its Q2 2025 EBITDA improvement shows early success in cost-cutting efforts, with management aiming for positive adjusted EBITDA in 2025.

While traditional valuation metrics don’t apply due to its growth focus, the company’s value lies in its long-term potential and strong cash position following the CRYOPDP divestiture.

Analyst Estimates and Ratings

• Consensus Rating: The consensus rating from 17 analysts is a "Buy", with a significant majority recommending a "Strong Buy".
• Price Target: The average 12-month price target is approximately $19.65, with a range from $8.08 to $16.80. This suggests a potential upside from the current share price.

Investor-Focused Takeaway: Is CYRX Right for Your Portfolio?

Cryoport offers exposure to the fast-growing life sciences and cell/gene therapy sectors. Strong Q2 2025 results and the CRYOPDP divestiture highlight its focus and momentum. While not yet consistently profitable, improving EBITDA and a solid cash position point to a clear path forward. Its high valuation reflects strong fundamentals and long-term growth potential.

What to Watch in the Near Term: 📈

• Operational Efficiency: Monitor the company's progress toward achieving sustained positive adjusted EBITDA.
• Biotech and Pharma R&D: Keep an eye on the number of new clinical trials and commercial therapies.
• Cash Utilization: uses of substantial cash reserves from the CRYOPDP sale, whether for new technology investments, acquisitions, or other strategic initiatives.

Recommendation:

CYRX is viewed as a strong long-term investment backed by analyst support and a positive outlook for the biotech cold chain market. The strategic move to partner with DHL and the focus on its core business strengthen its position. While macroeconomic factors like inflation and interest rates don’t directly affect demand, they can impact operating costs. Cryoport counters this with a focus on high-margin services and cost-efficiency.

Abeona Therapeutics (NASDAQ:ABEO)

Abeona Therapeutics (NASDAQ: ABEO) is a clinical-stage biopharmaceutical company focusing on the development and delivery of gene and cell therapies for severe, life-threatening rare diseases.

Business Model and Revenue Streams

Abeona is a clinical-stage biotech focused on R&D, with its value centered on its drug pipeline. Its lead product, ZEVASKYN™, a genecorrected cell therapy for RDEB, recently received FDA approval, marking its transition to commercial-stage.

Revenue Sources:

• Commercial Sales: Now driven by ZEVASKYN™, primary revenue stream.
• PRV Sale: Sold its Priority Review Voucher for a significant one-time, non-dilutive cash boost.
• Licensing: Earns revenue from licensing tech like its AAV204 capsid (e.g., to Beacon Therapeutics).

Macroeconomic factors have limited direct impact but could affect biotech funding and investor sentiment.

Recent Performance and Corporate Developments 📈

Abeona reported a remarkable second quarter of 2025, driven by a major one-time event that provided a significant boost to its financials and operational outlook.

Q2 2025 Financial Highlights: 💰

• Total Revenue: Abeona reported revenue of $400,000 in Q2 2025, which, while small, marks the beginning of its transition to a commercial company. The significant financial highlight, however, was a one-time gain.
• Net Earnings: The company swung to a surprising net income of $108.8 million, or $1.71 per diluted share, primarily due to the $155 million gain from the sale of the PRV. This far exceeded analyst expectations for a loss.
• Cash Position: The sale of the PRV boosted the company's cash and short-term investments to approximately $226 million, which management projects will fund operations for over two years without needing additional capital.

Strategic Initiatives and Mergers: 🤝

The most impactful recent development was the FDA approval of ZEVASKYN™ for RDEB in April 2025. This approval was a monumental milestone and The company is now focused on the commercial launch of ZEVASKYN, with the first patient treatments expected in Q3 2025.

Path to Profitability and Fair Value 🎯

Abeona’s path to profitability is now clearer, shifting from R&D to commercial with ZEVASKYN sales driving growth. Management aims for profitability by early 2026, supported by the PRV sale’s capital, which funds the launch and pipeline development.

Traditional valuation metrics don’t apply; the company’s value depends on ZEVASKYN’s success and its pipeline potential, reflecting the high-risk, high-reward nature of biotech stocks.

Analyst Estimates and Ratings

• Consensus Rating: The consensus rating from analysts is a "Strong Buy".
• Price Target: The average 12-month price target is approximately $20.91, representing a significant potential upside from the current share price.

Investor-Focused Takeaway: Is ABEO Right for Your Portfolio?

Abeona Therapeutics represents a compelling, albeit high-risk, investment in the exciting and rapidly growing gene therapy sector. The company's recent FDA approval of ZEVASKYN and its subsequent sale of the PRV have been transformative, providing a clear path to commercial revenue and a strong balance sheet. The stock is a classic biotech play: its future value is heavily dependent on the successful commercial launch and market uptake of ZEVASKYN.

What to Watch in the Near Term: 📈

• Commercial Launch: Monitor the company's progress in generating initial revenue from ZEVASKYN. This will be the most critical indicator of the therapy's commercial success.
• Insurance Coverage: Watch for updates on securing insurance coverage from major payers.
• Pipeline Updates: Keep an eye on the development of its other gene therapy programs for ophthalmic diseases, which could provide additional long-term value.

Recommendation:

ABEO is viewed as a strong long-term investment for investors with a higher risk tolerance. Its recent FDA approval and solid financial position from the PRV sale make it a standout in the clinical-stage biotech space. However, as with any biotech stock, a downturn in the broader economy could affect venture capital funding and the appetite for high-risk, pre-profitability stocks.

MannKind (NASDAQ:MNKD)

MannKind (NASDAQ: MNKD) is a biopharmaceutical company focused on developing and commercializing therapeutic products and devices for endocrine and orphan lung diseases. The company’s business model is unique as it relies on a mix of product sales from its own commercialized therapies and royalties from a key partnership.

Business Model and Revenue Streams

MannKind's model is built on two core pillars:

• Commercial Products: Includes Afrezza insulin and the V-Go wearable insulin device, driving direct sales revenue with efforts to boost market adoption.
• Collaboration and Royalties: Revenue from a key partnership with United Therapeutics, manufacturing and earning royalties on Tyvaso DPI, a high-margin inhaled therapy, now a major financial driver.

The company's revenue is relatively insulated from general macroeconomic policies like inflation and interest rates. Demand for its products is driven by medical necessity, not discretionary spending. However, a potential economic downturn could impact healthcare spending and insurance coverage, which may affect product adoption and sales.

Recent Performance and Corporate Developments 📈

MannKind reported a strong second quarter of 2025, marked by continued revenue growth and a major strategic acquisition.

Q2 2025 Financial Highlights: 💰

• Total Revenue: Total revenue was $77 million, a 6% increase year-over-year.
• Net Income & Adjusted EBITDA: The company reported a net income of $0.7 million in Q2 2025, a significant improvement from a net loss in the prior-year period. Non-GAAP net income was $13.9 million. The company's cash and investments stood at $201.2 million, demonstrating a strong liquidity position.
• Operational Highlights: Tyvaso DPI royalties increased by a significant 22%, while Afrezza net revenues grew by 13%, indicating solid momentum in its key products.

Strategic Initiatives and Mergers: 🤝

The most impactful recent news is the definitive agreement to acquire scPharmaceuticals for approximately $360 million. This is a transformative move that will add FUROSCIX, a new FDA-approved therapy for heart failure, to MannKind's portfolio. The acquisition is expected to accelerate revenue growth, diversify the company's product portfolio, and expand its presence in the cardiometabolic market. The deal is backed by a strategic financing agreement with Blackstone, which provides MannKind with access to up to $500 million in non-dilutive capital.

Path to Profitability and Fair Value 🎯

MannKind is on a clear path to sustained profitability. The strong and consistent royalty stream from Tyvaso DPI provides a solid financial foundation, which can be used to fund the commercialization of its proprietary products like Afrezza and the recently acquired FUROSCIX. The acquisition of scPharmaceuticals is a major catalyst, as it brings a new revenue-generating product and commercial infrastructure that will accelerate the company's growth trajectory.

Traditional valuation metrics may not fully capture its potential. The stock's value is linked to the successful integration of scPharmaceuticals and the continued growth of its core products. The recent non-dilutive financing from Blackstone also adds to its financial stability.
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Analyst Estimates and Ratings

• Consensus Rating: The consensus rating from analysts is a "Strong Buy".
• Price Target: The average 12-month price target is approximately $9.33, with some estimates as high as $20.91, representing a substantial potential upside.

Investor-Focused Takeaway: Is MNKD Right for Your Portfolio?

MannKind represents a compelling, yet evolving, investment opportunity. The company's robust Q2 2025 performance and the transformative acquisition of scPharmaceuticals demonstrate a clear path toward sustained revenue growth and profitability. The stock's value is supported by a mix of steady royalty income and the high-growth potential of its commercial and pipeline products.

What to Watch in the Near Term: 📈

• Acquisition Integration: Monitor the integration of scPharmaceuticals and the commercial launch of FUROSCIX.
• Tyvaso DPI Performance: Keep an eye on United Therapeutics' sales of Tyvaso DPI.
• Pipeline Updates: Watch for progress on the company's pipeline candidates, such as its inhaled clofazimine for lung infections, which could provide additional long-term value.

Recommendation:

MNKD is viewed as a strong long-term investment for investors who are comfortable with the inherent risks of the biotech industry. The company's strategic moves and improving financial performance are backed by a positive analyst outlook. However, investors should be aware of the risks associated with product commercialization, regulatory approvals, and competition.

A Final Word on Your Investment Decision

Cryoport (CYRX), Abeona Therapeutics (ABEO), and MannKind (MNKD) offer three distinct pathways to invest in the biotech sector—each with varying levels of maturity, risk, and growth potential. These under-$10 stocks provide unique opportunities based on your investment strategy and risk tolerance.

• Cryoport (CYRX) – Cold chain logistics backbone for biotech

✔ Vertically integrated platform serving cell & gene therapy supply chains
✔ Strong Q2 growth and improved EBITDA loss, with profitability targeted in 2025
✔ Strategic divestiture of CRYOPDP strengthens focus and cash reserves
➤ Best for: Long-term investors seeking stable exposure to biotech infrastructure with growing recurring revenue

• Abeona Therapeutics (ABEO) – FDA-approved gene therapy with breakout potential

✔ Recent FDA approval of ZEVASKYN™ positions company for commercial growth
✔ PRV sale provides two years of operational runway without dilution
✔ Early-stage pipeline adds long-term upside
➤ Best for: High-risk investors looking for a speculative play with transformative potential in rare disease gene therapy

• MannKind (MNKD) – Revenue-generating with strategic acquisition upside

✔ Solid commercial base with Afrezza and Tyvaso DPI royalties
✔ Acquisition of scPharmaceuticals adds a new FDA-approved product (FUROSCIX)
✔ Non-dilutive Blackstone financing boosts financial flexibility
➤ Best for: Investors seeking a hybrid of current revenue and future growth with a growing commercial footprint

Investor Insight:

🔹 Prefer a stable, revenue-backed logistics player? → Cryoport (CYRX)
​ 🔹 Willing to bet on early-stage, high-reward biotech breakthroughs? → Abeona (ABEO)
​ 🔹 Looking for a commercial-stage company with pipeline growth and recent acquisition momentum? → MannKind (MNKD)

Your decision should reflect your investment goals and comfort with risk. Each company offers a different angle on biotech innovation—from infrastructure and logistics to transformative therapies and commercial-stage execution. Choose the one that best aligns with your strategy.

We’ll be back with our next report soon, bringing you fresh insights on the market and new opportunities to watch. In the meantime, we’d love to hear from you—let us know how you found this report, what niche sectors you’d like us to cover next, and don’t forget to share your top stock holdings with us. Your feedback helps us deliver reports that matter most to your investing journey.

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Happy Trading
​— Team Premium Stock Alerts