In this article, we will list the 5 Best Healthcare Penny Stocks to Buy According to Hedge Funds. Please visit 9 Best Healthcare Penny Stocks to Buy According to Hedge Funds if you would like to see the extended list and the methodology behind it.
5. Nuvation Bio Inc. (NYSE:NUVB)
Stock Upside Potential: 163.36%
Number of Hedge Fund Holders: 40
Nuvation Bio Inc. (NYSE:NUVB) is one of the best healthcare penny stocks to buy according to hedge funds. On April 8, analysts at Truist Securities reiterated a Buy rating on Nuvation Bio Inc (NYSE:NUVB) with a $12 price target. The positive stance follows a meeting with the company’s management.
The meetings centered on the launch of Ibtrozi, the company’s FDA-approved once-daily inhibitor for treating adults with advanced or metastatic non-small cell lung cancer. Management confirmed the launch of the candidate drug, with prospects of it adding about 200 points per quarter in the near term.
The company is already capitalizing on patient mix shifting towards the use of Ibtrozi as a first line of defense, with the potential to expand as testing increases. Last year, Nuvation Bio generated $15.7 million in net product value from the launch of Ibtrozi, with 216 new patients starting treatment in the fourth quarter. In addition, Truist Securities touted the company’s Safu treatment prospects in Glioma.
Nuvation Bio Inc. (NYSE:NUVB) is a commercial-stage biopharmaceutical company focused on developing and commercializing novel, targeted oncology medicines for difficult-to-treat cancers. The company targets drug resistance and aims to improve patient quality of life through a deep pipeline of small molecule inhibitors and drug-drug conjugates.
4. MannKind Corporation (NASDAQ:MNKD)
Stock Upside Potential: 171.26%
Number of Hedge Fund Holders: 39
MannKind Corporation (NASDAQ:MNKD) is one of the best healthcare penny stocks to buy according to hedge funds. On March 30, Truist Securities reiterated that MannKind (NASDAQ:MNKD) is a Buy with a $7 price target in response to positive trial results from its strategic partner, United Therapeutics.
MannKind has partnered with United Therapeutics to develop Tyvaso products. United Therapeutics delivered positive top-line data in the TETON-1 study investigating inhaled treprostinil (Tyvaso) for Idiopathic Pulmonary Fibrosis (IPF). The 598-patient multicenter randomized, double-blind Phase III study of nebulized Tyvaso showed superiority over placebo for the change in absolute forced vital capacity.
An analysis of TETON-1 and TETON-2 delivered positive topline results versus placebo, with a change in absolute FVC of 111.8 mL. According to Truist Securities, the top-line clinical data underscores the tremendous prospects of the Tyvaso franchise. In addition, the results bode well for Tyvaso’s future in IPF.
Earlier at the Barclays 28th Annual Global Healthcare Conference, MannKind reiterated its plans to expand revenue streams and achieve $1 billion in sales in five years. The acquisition of scPharmaceuticals is poised to strengthen the company’s revenue streams and expand its cardiometabolic portfolio.
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company focused on developing and commercializing inhaled therapeutics and drug-delivery technologies for endocrine and orphan lung diseases. They specialize in dry-powder formulations using their proprietary Technosphere® technology, delivering drugs deep into the lungs.
3. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Stock Upside Potential: 173.42%
Number of Hedge Fund Holders: 32
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is one of the best healthcare penny stocks to buy according to hedge funds. On April 6, Canaccord reiterated its Buy rating on Taysha Gene Therapies Inc. (NASDAQ:TSHA) and raised its price target to $17 from $14. The price target hike comes on the heels of the stock’s impressive 258% return over the past year.
Canaccord remains confident about the company’s long-term prospects in the aftermath of the company confirming dosing completion in both the REVEAL and ASPIRE trials in the second quarter. The company is currently advancing TSHA-102, an AAV9-based gene therapy for Rett syndrome. The FDA has already cleared initiation of the ASPIRE trial, in which three patients between 2 and 4 years old are to receive a scaled-down 1E15 dose.
Taysha Gene Therapies plans to provide updated Part A data for the trials in the second quarter, once all 12 patients have received at least 12 months of follow-up. On the other hand, interim six-month pivotal data should be available before year-end.
According to Canaccord, the significant milestone gains and clean safety profile in the pivotal trials underscore why Taysha Gene Therapies is a buy.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company developing adeno-associated virus (AAV)-based gene therapies for severe, rare genetic disorders of the central nervous system. Their primary focus is TSHA-102, a promising one-time gene therapy for Rett syndrome.
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.
1. CytomX Therapeutics, Inc. (NASDAQ:CTMX)
Stock Upside Potential: 221.78%
Number of Hedge Fund Holders: 33
CytomX Therapeutics (NASDAQ:CTMX) is one of the best healthcare penny stocks to buy according to hedge funds. On March 24, analysts at Jefferies reiterated their Buy rating on CytomX Therapeutics (NASDAQ:CTMX) and set a $16 price target. The research firm remains bullish on the company following topline results from its candidate drug, Varseta-M.
Varseta-M is a first-in-class antibody-drug conjugate targeting the epithelial cell adhesion molecule in colorectal cancer. Trials’ results for the candidate drug showed no EpCAM-class toxicities in an expanded dataset of approximately 80 patients. Nevertheless, management confirmed they are working to address the diarrhea adverse event migration and dose fine-tuning.
CytomX Therapeutics has already conducted a $250 million public offering as it seeks to secure the much-needed capital to accelerate the development of its candidate drugs. On the other hand, Jefferies has identified incremental efficacy and durability updates for the candidate drug to bolster the stock’s market sentiment.
CytomX Therapeutics, Inc. (NASDAQ:CTMX) is a clinical-stage biopharmaceutical company developing “masked” antibody therapeutics, known as PROBODY platforms, designed to activate specifically within tumor microenvironments. This approach targets cancer while minimizing damage to healthy tissue, focusing on antibody-drug conjugates (ADCs) and T-cell engagers to treat advanced cancers.
While we acknowledge the potential of CTMX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CTMX and that has 100x upside potential, check out our report about the cheapest AI stock.
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