Retail Traders Flocked To These 5 Biotech Stocks In January — Here’s Why

Biotech stocks remain a hot sector for retail traders on Stocktwits, which collectively boast over 3.45 million followers. 

In January, several biotech names saw explosive gains as investors bet on breakthrough treatments, key partnerships, and regulatory milestones.

According to Stocktwits data, these five biotech stocks saw the highest surge in retail following this month.

CARGO Therapeutics Inc. (CRGX) – 445% Jump In Followers

CARGO Therapeutics, a clinical-stage biotech company focused on cancer treatments, saw its stock collapse even as retail interest surged. 

In January, the FDA cleared its Investigational New Drug (IND) application for CRG-023, a novel tri-specific CAR T therapy designed to tackle relapse factors in B-cell malignancies. 

However, the company later announced it would discontinue a Phase II trial of its lead candidate, firi-cel, after an ad hoc safety analysis revealed an unfavorable benefit-risk profile. 

Wall Street analysts issued downgrades, and CARGO’s stock is on track to plunge more than 76% in January — its worst month since going public in November 2023. 

Short interest stands at 15.1%, according to Koyfin data.

Sana Biotechnology Inc. (SANA) – 185% Jump In Followers

Sana Biotechnology, which focuses on engineered cell therapies, captured investor attention with a potential breakthrough in type 1 diabetes. 

The company demonstrated earlier this month that its hypoimmune edits allowed islet cell transplant survival without immunosuppression. 

Analysts praised the findings, driving the stock up roughly 114% in January — its best month since its March 2021 market debut. 

Short interest is at 16.6%.

Silexion Therapeutics Corp. (SLXN) – 92% Jump In Followers

Silexion, an oncology-focused biotech developing RNA interference therapies, gained momentum after releasing preclinical data on a second-generation siRNA candidate, SIL-204. 

The treatment showed synergistic efficacy when combined with first-line chemotherapy for pancreatic cancer. 

Although the stock gained just 2% in January, it marked its best month since November. 

Short interest remains low at 2.4%.

AEON Biopharma Inc. (AEON) – 81% Jump In Followers

AEON Biopharma is developing ABP-450, a botulinum toxin complex similar to Evolus’ Jeuveau, for medical indications such as chronic migraine. 

Retail traders appeared to buy the dip after AEON priced a $20 million public offering earlier this month, which initially sent shares tumbling. 

The stock is headed for a 77% drop in January, its worst month since going public via a SPAC merger in July 2023. 

Short interest is just 0.2%, according to Koyfin.

Kairos Pharma (KAPA) – 78% Jump In Followers

Kairos Pharma, a clinical-stage biopharmaceutical company, saw retail interest soar this month after breaking key resistance levels and securing crucial investments. 

The company is testing its lead candidate, ENV105 — which targets a protein linked to resistance in cancer treatments — in Phase 2 trials for castrate-resistant prostate cancer and Phase 1 trials for lung cancer.

The stock gained momentum following CEO John Yu’s positive comments at an investor healthcare summit this month and the completion of a $3.5 million PIPE transaction. 

Kairos shares are set to decline 2.6% in January, marking their worst month since October. 

Short interest remains negligible at 0.1%.

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