11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds

9. Schrödinger, Inc. (NASDAQ:SDGR)

Market Cap as of July 3: ~$2 billion

Number of Hedge Fund Holders: 21

Schrödinger, Inc. (NASDAQ:SDGR) is one of the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds. Morgan Stanley assumed coverage on the company’s stock with an “Equalweight” rating and a price objective of $28.00, down from the prior target of $31.00, as reported by The Fly. As per the firm’s analyst, Schrödinger, Inc. (NASDAQ:SDGR) saw volatility because of macroeconomic factors, underperformance on initial clinical results, as well as uncertainty on valuation and revenue drivers. That being said, the firm believes that Schrödinger, Inc. (NASDAQ:SDGR)’s software business offers a steady revenue stream, which tends to act as a safety net for the stock, irrespective of the outcomes of partnerships as well as proprietary pipeline.

The company announced that SGR-1505, its clinical-stage MALT1 inhibitor, has been designated as a Fast Track product by the US FDA for treating adult patients with Waldenström macroglobulinemia that have failed at least 2 lines of therapy, including a Bruton’s tyrosine kinase (BTK) inhibitor. Schrödinger, Inc. (NASDAQ:SDGR)’s key personnel stated that, despite continued therapeutic advances in the treatment of hematologic malignancies, there remains a challenge for treatment failure and disease progression due to BTK resistance for patients. The unmet need provides an opportunity for novel mechanisms like MALT1 as monotherapy and as part of the new combination regimens. Notably, the FDA Fast Track program focuses on facilitating the development and expediting review of drug candidates in order to treat serious conditions and fill unmet medical needs.