In this piece, we will take a look at the five best medical stocks under $5. If you want a primer on the industry and more stocks, then head on over to 10 Best Medical Stocks Under $5.
5. Geron Corporation (NASDAQ:GERN)
Number of Hedge Fund Holders: 11
Geron Corporation (NASDAQ:GERN) is a biopharmaceutical company that is involved in the development of drugs for advanced blood cancers. These include fighting the spread of stem cells in blood cancer such as hematologic myeloid malignancies. It is based in Foster City, California, the United States.
Geron Corporation (NASDAQ:GERN) is witnessing strong interest and momentum for its blood cancer drug Imetelstat which stops the growth of malignant cells in the disease. This drug focuses on patients that continue to develop anemia after being treated with other drugs, and the market stands at a peak value of $1.2 billion.
Its phase 2 results show that the treatment’s effects last for 88 weeks, more than double the 33 weeks for its closest rival. The market is optimistic about Imetelstat’s potential, and Geron Corporation (NASDAQ:GERN)’s shares have rallied by 77% year to date. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 12 had held a stake in the company.
Out of these, Peter Kolchinsky’s RA Capital Management is Geron Corporation (NASDAQ:GERN)’s largest investor. It owns 30 million shares that are worth $46 million.
4. Ardelyx, Inc. (NASDAQ:ARDX)
Number of Hedge Fund Holders: 16
Ardelyx, Inc. (NASDAQ:ARDX) develops several treatments for patients with kidney diseases, irritable bowel syndrome, heart diseases, and metabolic acidosis. The firm is headquartered in Waltham, Massachusetts.
Ardelyx, Inc. (NASDAQ:ARDX)’s Ibsrela drug is for patients with irritable bowel syndrome, and the drug is playing in a $3 billion market with 5 million annual prescriptions. The drug is a strong product as it is different from the other three medicines for the diseases, as it is the only option for patients that do not respond well to the other treatments. Ardelyx, Inc. (NASDAQ:ARDX) is also using the active ingredient in this drug to treat kidney patients, in a market with 550,000 patients in the U.S.
Ardelyx, Inc. (NASDAQ:ARDX)’s shares are up by 27% year to date. By the end of this year’s second quarter, 16 out of the 895 hedge funds polled by Insider Monkey had invested in the company.
Ardelyx, Inc. (NASDAQ:ARDX)’s largest investor is Steven Cohen’s Point72 Asset Management which owns 5 million shares that are worth $2.9 million.
3. CTI BioPharma Corp. (NASDAQ:CTIC)
Number of Hedge Fund Holders: 17
CTI BioPharma Corp. (NASDAQ:CTIC) is a blood cancer treatment developer headquartered in Seattle, Washington, the United States. The firm’s treatments target adults with myelofibrosis.
CTI BioPharma Corp. (NASDAQ:CTIC) reported $12.3 million in revenue during its second quarter, and at the same time, the firm also had $8.2 million in receivables – a strong indicator of its third quarter revenue especially since they are more than half of what the revenue was. CTI BioPharma Corp. (NASDAQ:CTIC) has also been an analyst darling in October 2022, with Jefferies and SVB Securities setting $13 share price targets for the company, and setting Buy and Outperform ratings for the shares, respectively.
CTI BioPharma Corp. (NASDAQ:CTIC) also expects its current financial resources to last one more year of operations. The firm’s shares have rallied by a whopping 78% year to date. As this year’s second quarter ended, 17 out of the 895 hedge funds polled by Insider Monkey owned CTI BioPharma Corp. (NASDAQ:CTIC) shares.
CTI BioPharma Corp. (NASDAQ:CTIC)’s largest investor is Mark Lampert’s Biotechnology Value Fund / BVF Inc which owns 53 million shares that are worth $8.9 million.
2. Verastem, Inc. (NASDAQ:VSTM)
Number of Hedge Fund Holders: 18
Verastem, Inc. (NASDAQ:VSTM) is a biotechnology company headquartered in Needham, Massachusetts that focuses on developing cancer treatments. It targets several kinds of cancers such as ovarian cancer and lung cancer.
Verastem, Inc. (NASDAQ:VSTM) has a strong balance sheet, with the company’s cash balance totaling $94 million by June 2022 while it reported $19.6 million in operating expenses in its second quarter. At this run rate, the firm is in a good position for more than a year. All of the firm’s treatment regiments for a host of indications of lung and ovarian cancers are in phase two trials, providing it with sufficient future catalysts.
Verastem, Inc. (NASDAQ:VSTM)’s share price target was lowered to $5 from $8 by BTIG in October 2022, but the firm kept a Buy rating for the shares as it maintained that the firm’s deal for a drug with another company has favorable terms. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 18 as having bought Verastem, Inc. (NASDAQ:VSTM)’s shares.
James Baker and Felix Baker’s Baker Bros. Advisors is Verastem, Inc. (NASDAQ:VSTM)’s largest investor. It owns 26 million shares that are worth $31 million.
1. Karyopharm Therapeutics Inc. (NASDAQ:KPTI)
Number of Hedge Fund Holders: 21
Karyopharm Therapeutics Inc. (NASDAQ:KPTI) targets nuclear export with its cancer drugs. They battle diseases such as myeloma and lymphomas by inhibiting nuclear export compounds such as the XPO1 protein. The company is headquartered in Newton, Massachusetts.
Karyopharm Therapeutics Inc. (NASDAQ:KPTI) second quarter saw the firm grow its revenue by 76% annually as it reported $39.7 million in the segment. The bulk of this revenue was contributed by the $29 million worth of sales in the United States, which marked 44% annual growth. Additionally, the firm’s compounded annual revenue growth rates stand at 332%, 192%, and 146% for the past five, three, and one year, respectively.
Karyopharm Therapeutics Inc. (NASDAQ:KPTI)’s XPOVIO treatment for myeloma penetrated 67% of the top 20% of patients in the U.S. in the second quarter, a significant achievement as 80% of the total patients come from the top 20%. Baird lowered the firm’s share price target to $14 (its current share price is $4.55) from $17 in August 2022 as it shared that the revenue guidance for XPOVIO had been lowered.
Insider Monkey surveyed 895 hedge fund portfolios for their June quarter of 2022 holdings to discover that 21 had invested in the firm.
Out of these, Karyopharm Therapeutics Inc. (NASDAQ:KPTI)’s largest investor is William Leland Edwards’s Palo Alto Investors which owns 5.6 million shares that are worth $25 million.
Disclosure: None. You can also take a look at Cheap Dividend Stocks To Invest In and 10 Best Stocks to Buy According to Billionaire Dan Loeb.
