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

2. Mineralys Therapeutics Inc. (NASDAQ:MLYS)

Mineralys Therapeutics Inc. (NASDAQ:MLYS) is one of the 7 best small-cap healthcare stocks to buy according to hedge funds.

On March 13, Bank of America Securities maintained a Buy rating on Mineralys Therapeutics Inc. (NASDAQ:MLYS). The firm increased its price target to $51 from $46, citing recent updates on the clinical development progress of its lead drug, lorundrostat, following the fourth quarter earnings report.

It added that the therapy’s peak sales opportunity in treating uncontrolled hypertension remains underappreciated, supporting a more constructive view on the company’s long-term potential.

On March 13, Mineralys Therapeutics Inc. (NASDAQ:MLYS) Chief Executive Officer Jon Congleton stated that 2025 was a transformative year for Mineralys. The year was marked by significant clinical advancements and important regulatory achievements, as it was able to finish many of the clinical trials.

Congleton highlighted that the results indicate lorundrostat to be of use to people whose hypertension is poorly controlled. He also stated that the company submitted its first NDA for the treatment of adult hypertension at the end of the year, and the FDA’s acceptance of the application marked a significant turning point for the business. This is a significant advancement for Lorundrostat in terms of possible approval and commercialisation.

Mineralys Therapeutics Inc. (NASDAQ:MLYS) engages in the development of therapeutics that target illnesses caused by dysregulated aldosterone. It is working on the development of lorundrostat, an aldosterone synthase inhibitor for cardiorenal conditions. These include chronic kidney disease, hypertension, and obstructive sleep apnea.