10 Best Biotech Penny Stocks to Buy Now

2. Annexon, Inc. (NASDAQ:ANNX)

Number of Hedge Fund Holders: 27 

Annexon, Inc. (NASDAQ:ANNX) is a clinical-stage biopharmaceutical company focused on developing innovative therapies for patients with classical complement-mediated disorders of the body, brain, and eye. The company is pioneering a new approach to treat complement-mediated diseases by inhibiting the classical complement pathway at its start. With the help of lead candidate ANX005, Annexon has advanced its clinical programs. The company recently announced a conference call to present Phase 3 data for Guillain-Barré syndrome on June 3, 2024. This announcement caused the stock price to rise by 60% during June 3–4. Even though Annexon suggested a public stock offering on June 4, the company has maintained its gains, demonstrating strong positive momentum.

Based on analysis by six Wall Street analysts over the last three months, Annexon, Inc. (NASDAQ:ANNX) has a Strong Buy rating. A high estimate of $30.00 and a low prognosis of $12.00 indicate the average 12-month price target, which is $17.50. Given that it is currently selling at $4.82, this implies a possible 263.07% gain. In Q1 2024, 27 hedge funds held positions in the company, up from 23 in the previous quarter. Biotechnology Value Fund / BVF Inc held the largest position in the company with 7,000,000 shares worth $50,190,000, comprising 1.37% of the company’s total portfolio.

In Q1 2024, Annexon, Inc. (NASDAQ:ANNX) reported a net loss of $25.2 million, or $0.21 per share which is a significant improvement from the $38.7 million loss, or $0.52 per share, in Q1 2023, reflecting enhanced financial performance. Their research and development expenses decreased to $21.0 million from $32.3 million in Q1 2023, as the company focused on advancing priority programs such as treatments for Guillain-Barré Syndrome (GBS) and Geographic Atrophy (GA), along with ANX1502 development. As of March 31, 2024, Annexon had cash, cash equivalents, and short-term investments totaling $264.9 million. Looking forward, key milestones for 2024 include pivotal Phase 3 data for ANX005 in GBS expected in Q2 2024, initiation of a Phase 3 trial for ANX007 in GA in mid-2024, and clinical proof of concept data for ANX1502 in the second half of 2024.