5 Best Penny Stocks Under $1 According to Hedge Funds

4. Vistagen Therapeutics, Inc. (NASDAQ:VTGN)

Number of Hedge Fund Holders: 15 

Stock Price as of Last Close of May 12: $0.62 

Vistagen Therapeutics, Inc. (NASDAQ:VTGN) is also among the best penny stocks.

TheFly reported on May 12 that VTGN shared early findings from the continuing extension phase of its Phase 3 PALISADE-3 study evaluating fasedienol for acute social anxiety disorder. Participants who entered the extension study used 3.2 micrograms of fasedienol as needed in real-world anxiety-triggering situations for up to 12 months, with dosing allowed multiple times daily and no new safety concerns observed. Exploratory outcomes over four months showed improvement on clinician-rated Liebowitz Social Anxiety Scale and Social Phobia Inventory measures. Overall tolerability remained strong with no identified adverse trends, and patients reported gradual benefit over time, supporting continued development of intranasal therapy for anxiety treatment.

Previously, on May 8, Vistagen Therapeutics, Inc. (NASDAQ:VTGN) reported that the final participant completed the last scheduled visit in the randomized, double-blind, placebo-controlled phase of its PALISADE-4 Phase 3 trial evaluating fasedienol nasal spray for acute social anxiety disorder.

The study’s open-label extension is continuing. PALISADE-4 is a U.S. multicenter trial assessing the single-dose treatment effect of fasedienol on anxiety symptoms during a controlled public speaking challenge, using the Subjective Units of Distress Scale as the primary endpoint. Eligible participants from the blinded phase who joined the extension may continue using the therapy in everyday situations up to six times daily for as long as 12 months.

Vistagen Therapeutics, Inc. (NASDAQ:VTGN) is a clinical-stage biopharmaceutical company based in South San Francisco. It develops rapid-onset intranasal CNS therapies (“pherines”) for psychiatric and neurological disorders.