5 Best Small Cap Pharma Stocks to Invest In

In this piece, we will take a look at the five best small cap pharma stocks to invest in. If you want to learn more abut pharma stocks as well as small cap stocks, then read 11 Best Small Cap Pharma Stocks to Invest In.

5. Collegium Pharmaceutical, Inc. (NASDAQ:COLL)

Number of Hedge Fund Investors In Q4 2023: 26

Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is a pain medication provider also headquartered in Massachusetts. The firm’s fourth quarter of 2023 earnings proved to be a catalyst for the stock after Collegium Pharmaceutical, Inc. (NASDAQ:COLL)  reported that its earnings per share of 99 cents had smashed analyst estimates of 66 cents out of the park.

As of Q4 2023 end, 26 out of the 933 hedge funds covered by Insider Monkey’s research had held a stake in Collegium Pharmaceutical, Inc. (NASDAQ:COLL). David Rosen’s Rubric Capital Management was the firm’s biggest hedge fund investor courtesy of its $84 million stake.

4. Avadel Pharmaceuticals plc (NASDAQ:AVDL)

Number of Hedge Fund Investors In Q4 2023: 26

Avadel Pharmaceuticals plc (NASDAQ:AVDL) is an American firm that is developing treatments for sleep disorders. Its shares have erased a large portion of their gains made since April 2024 on the back of poor financial performance in the form of earnings misses. However, notable research firms such as UBS and Needham have rated the stock as Buy.

During December 2023, 26 out of the 933 hedge funds part of Insider Monkey’s database had invested in the firm. Avadel Pharmaceuticals plc (NASDAQ:AVDL)’s largest stakeholder in our database is Brian Ashford-Russell and Tim Woolley’s Polar Capital since it owns $95.3 million worth of shares.

3. Pacira BioSciences, Inc. (NASDAQ:PCRX)

Number of Hedge Fund Investors In Q4 2023: 26

Pacira BioSciences, Inc. (NASDAQ:PCRX) is a specialty pharma small cap stock that focuses on making medicines that are used to make non opiod based pain management medicine. The firm was out with a key set of research data in February 2024 that saw its treatment outperform a rival in helping patients undergoing toe surgery to correct bunions.

By the end of this year’s fourth quarter, 26 out of the 933 hedge funds profiled by Insider Monkey were Pacira BioSciences, Inc. (NASDAQ:PCRX)’s investors. Jim Simons’ Renaissance Technologies owned the biggest stake which was worth $57.9 million.

2. Esperion Therapeutics, Inc. (NASDAQ:ESPR)

Number of Hedge Fund Investors In Q4 2023: 28

Esperion Therapeutics, Inc. (NASDAQ:ESPR) is a Michigan based firm developing medicine to help people with low cholesterol. The firm has beaten analyst EPS estimates in three out of its four latest quarters and the shares are rated Buy on average.

Insider Monkey’s December quarter of 2023 survey covering 933 hedge funds revealed that 28 had invested in the firm. Esperion Therapeutics, Inc. (NASDAQ:ESPR)’s largest investor among these is Sina Toussi’s Two Seas Capital due to its $22.9 million investment.

1. Dynavax Technologies Corporation (NASDAQ:DVAX)

Number of Hedge Fund Investors In Q4 2023: 28

Dynavax Technologies Corporation (NASDAQ:DVAX) develops vaccine for Hepatitis B. Its latest earnings report in February 2024 led to the shares jumping by 2% in aftermarket, with Dynavax Technologies Corporation (NASDAQ:DVAX) announcing that revenue for its unique Hepatitis B vaccine had jumped by 69% annually in 2023 to sit at $213 million.

28 out of the 933 hedge funds covered by Insider Monkey’s Q4 2023 research had bought Dynavax Technologies Corporation (NASDAQ:DVAX)’s shares. David Kroin’s Deep Track Capital was the biggest shareholder as it owned $99.1 million worth of shares.

Disclosure: None. You can also take a look at 11 Best Small-Cap Growth Stocks to Invest In and Top 20 Most Valuable Travel Companies in the World.

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