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

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In this article, we will list the 5 Best Small-Cap Healthcare Stocks to Buy According to Hedge Funds. Please visit 7 Best Small-Cap Healthcare Stocks to Buy According to Hedge Funds if you’d like to see an extended list and the methodology behind it.

5. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is one of the 7 best small-cap healthcare stocks to buy according to hedge funds.

On March 12, Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) announced that the Phase 3 Enh3ance study of DTX301, an experimental AAV8 gene therapy for the treatment of ornithine transcarbamylase deficiency, yielded favourable findings.

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DTX301-treated patients showed a statistically significant and clinically meaningful 18% decrease in 24-hour plasma ammonia compared to placebo at Week 36 of the randomised, double-blind, placebo-controlled phase of the trial. Throughout Week 36, the average ammonia AUC0-24 remained within the normal range.

Despite appropriate current medication treatment and dietary restriction, eight out of nine patients with abnormal ammonia AUC0-24 at baseline quickly reached normal ammonia levels, which were often maintained during this treatment period.

On March 12, JPMorgan reduced its price target on Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) from $120 to $74. The firm maintained an Overweight rating on the shares. JPMorgan noted that current share levels do not reflect meaningful value for key pipeline assets, including GTX-102.

It added that updated estimates also incorporate reduced expectations for setrusumab following a recent setback, while emphasizing that positive clinical data will be important to drive future upside.

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) develops novel therapies, with a focus on identifying, acquiring, and commercializing products for rare and ultra-rare genetic diseases. It has a strong emphasis on gene therapy and covers various stages of clinical trials. The company is currently going through high cash burn with the aim of turning profitable from 2027 onwards.

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