5 Best Small-Cap Biotech Stocks to Buy According to Hedge Funds

3. Biohaven Ltd. (NYSE:BHVN)

Market Cap: $1.65 billion

Number of Hedge Fund Holders: 51

Biohaven Ltd. (NYSE:BHVN) is one of the best small-cap biotech stocks to buy according to hedge funds. The company’s stock price posted a 1.29% year-to-date increase, while it registered a 46.57% decline from a year ago. Based on an analyst consensus by TipRanks, Biohaven has an average price target of $21.44 with a moderate buy rating from analysts.

In March, Biohaven announced the completion of enrollment in a Phase 2 proof-of-concept (PoC) study with its myostatin-activin pathway inhibitor (MAPI), taldefgrobep alfa, which offers the potential to achieve high-quality weight loss in people living with obesity. It said the topline data from the study are expected in the second half of the year.

Biohaven Senior Vice President of Clinical Development Peter Ackerman, M.D., expressed his excitement for the evaluation of taldefgrobep. He said:

“We believe taldefgrobep could represent an important new agent, as monotherapy and in combination with the current standard of care, that can help optimize high-quality weight loss in people living with obesity. New investigational therapies with novel modes of action are critical to maximizing long-term health benefits in people living with overweight and obesity. While there have been great recent advancements in the field of obesity medicine, there is still a lot of work to do in optimizing the management of a complex, heterogeneous condition that affects nearly half of the world’s population. Our team is grateful to the investigators, their staff, and all participants involved in this important study.”

Biohaven Ltd. (NYSE: BHVN) is a biopharmaceutical company focused on the discovery, development, and commercialization of life-changing treatments in key therapeutic areas, including immunology, obesity, neuroscience, and oncology. The company is advancing its innovative therapeutic portfolio, leveraging its proven drug development experience and multiple proprietary drug development platforms.