5 Most Promising Small-Cap Stocks to Buy According to Hedge Funds

4. Innoviva, Inc. (NASDAQ:INVA)

Number of Hedge Fund Holders: 26

Market Cap: $1.66 billion

Innoviva, Inc. (NASDAQ:INVA) is one of the most promising stocks on our list.

TheFly reported on June 18 that INVA announced the launch of Nortiva Bio, a clinical-stage biopharmaceutical company focused on developing long-acting oral therapies through its proprietary LYNX drug delivery platform. The technology is designed to convert traditional daily oral medicines into extended-release treatments with potential dosing intervals of up to one month.

Nortiva aims to improve treatment effectiveness, safety, medication adherence, and patient experiences across multiple therapeutic areas. The company operates as a wholly owned subsidiary of INVA following the acquisition of the LYNX platform from Lyndra Therapeutics in 2025.

Separately, on June 16, Innoviva, Inc. (NASDAQ:INVA) Specialty Therapeutics, a subsidiary of INVA, announced an exclusive distribution and licensing agreement with Dr. Reddy’s Laboratories for XACDURO in selected international markets. Under the agreement, Dr. Reddy’s will oversee development, regulatory processes, and commercialization efforts across South and Central America, the Caribbean, Russia, and the Commonwealth of Independent States countries.

Innoviva Specialty Therapeutics will maintain rights to XACDURO in markets outside the licensed regions. The company is also eligible to receive upfront payments, milestone-based payments tied to regulatory and commercial progress, and royalties from sales generated within the covered territories.

Innoviva, Inc. (NASDAQ:INVA) is a biopharmaceutical company focused on critical care and infectious disease treatments, supported by stable revenue from its respiratory royalty portfolio and investments in innovative therapies.