10 Best NASDAQ Stocks Under $5 to Buy Right Now

7. Palisade Bio Inc. (NASDAQ:PALI)

Number of Hedge Fund Holders: 37

Palisade Bio Inc. (NASDAQ:PALI) is one of the best NASDAQ stocks under $5 to buy right now. On May 12, Palisade reported Q1 2026 earnings, recording a net increase in operating expenses to fund its clinical pipeline. R&D expenses rose to $6.4 million for the quarter, compared to $1.0 million in Q1 2025, driven by higher employee-related costs, chemistry, manufacturing, and controls/CMC expenses, and clinical trial costs for PALI-2108. G&A expenses also increased to $4.4 million, up from $1.4 million in the prior year’s period, due to higher professional fees and non-cash share-based compensation.

The company highlighted the continued clinical progress of its lead candidate, PALI-2108, a once-daily, orally administered PDE4 inhibitor prodrug designed for targeted delivery to the terminal ileum and colon to treat inflammatory bowel disease/IBD. Following positive Phase 1a/b data in ulcerative colitis/UC, Palisade Bio reported encouraging data from its Phase 1b fibrostenotic Crohn’s disease cohort. The results showed sustained active metabolite exposure above necessary thresholds, favorable distribution to colon tissue, and modulation of key inflammatory and fibrotic pathways.

Palisade Bio Inc. (NASDAQ:PALI) plans to submit an IND application for a Phase 2 UC trial in Q2, aiming for trial initiation in Q3 and a primary efficacy readout in H2 2027. Additionally, an IND submission for a Phase 2 Crohn’s disease trial is expected in H2 2026, targeting trial initiation in Q1 2027 and a primary efficacy readout in early 2028.

Palisade Bio Inc. (NASDAQ:PALI) is a biopharmaceutical company.

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