5 Best Healthcare Penny Stocks to Buy According to Hedge Funds

2. Sana Biotechnology Inc. (NASDAQ:SANA)

Stock Upside Potential: 195.95%

Number of Hedge Fund Holders: 21

Sana Biotechnology Inc. (NASDAQ:SANA) is one of the best healthcare penny stocks to buy according to hedge funds. On March 16, H.C. Wainwright reiterated Sana Biotechnology (NASDAQ:SANA) as a Buy with a $7 price target.

The research firm remains bullish on the company following the topline clinical trial data presented at the Advanced Technologies & Treatments for Diabetes conference. The trial results showed sustained survival and function of pancreatic beta cells.

The company delivered topline results from a 14-month follow-up Phase 1 UP421 IST evaluating allogeneic hypo-immune modified pancreatic islet cells in patients with Type 1 diabetes. The trial results showed a rebound in C-peptide levels comparable to those observed during the initial 6 months of the study, reversing the previous decline.

The positive data have opened the door for the company to file an Initial New Drug Application and initiate Phase 1 for SC451 as early as this year. The company exited the fourth quarter with $138 million in cash reserves, expected to last until the end of the year as it develops its current pipeline.

Sana Biotechnology Inc. (NASDAQ:SANA) is a clinical-stage company developing engineered cell therapies to treat serious diseases by repairing or replacing malfunctioning cells. It focuses on creating “off-the-shelf” (allogeneic) cell therapies that can evade immune detection, primarily targeting Type 1 diabetes, B-cell cancers, and autoimmune disorders, using hypoimmune (HIP) and in vivo gene-delivery technology.