5 Best Small-Cap Biotech Stocks with Massive Potential According to Hedge Funds

Below we present the list of 5 Best Small-Cap Biotech Stocks with Massive Potential According to Hedge Funds. For our methodology and a more comprehensive list of top stocks in the biotech space, please see 12 Best Small-Cap Biotech Stocks with Massive Potential According to Hedge Funds.

5. Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX)

Number of Hedge Fund Shareholders: 36

The number of hedge funds long Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) has ticked up steadily over each of the past four quarters, more than doubling during that time. Despite the influx of new funds into Amylyx, Joseph Edelman’s Perceptive Advisors and Andreas Halvorsen’s Viking Global have remained the top AMLX shareholders for more than a year.

Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shares have stumbled by 48.8% in 2023, with the latest blow coming in mid-October when the European Medicines Agency refused for a second time to recommend the company’s ALS treatment AMX0035 for marketing authorization in the EU. AMX0035 has already received FDA approval in the U.S as well as conditional approval in Canada.

Despite the recent setback, Mizuho Securities analyst Graig Suvannavejh maintained a ‘Buy’ rating on Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) following the news, stating it wasn’t unexpected and had been somewhat baked into the stock’s 2023 struggles. He further noted that EU approval for AMX0035 could still be achieved following the conclusion of the late-stage study of the treatment, which is expected to wrap up around the middle of 2024. The analyst has a $48 price target on AMLX shares, more than twice their current value.