10 Best Debt Free Mid Cap Stocks to Buy Now

4. Nuvalent, Inc. (NASDAQ:NUVL)

Number of Hedge Fund Holders: 50

Enterprise Value: $4.15 billion

Market Capitalization: $5.27 billion

Nuvalent, Inc. (NASDAQ:NUVL) is a biopharmaceutical company focused on developing targeted treatments for cancers with few existing options. Its products are designed to address issues like resistance to therapy, side effects, and tumors that spread to the brain. The company is advancing drug candidates aimed at specific types of lung and other cancers, and these are currently undergoing clinical testing. NUVL’s approach seeks to offer more precise and effective solutions to improve patient outcomes and capture market opportunities in oncology.

Nuvalent, Inc. (NASDAQ:NUVL) is demonstrating strong clinical execution, with robust enrollment across its pipeline – 430 patients in the ROS1 program and 600 in the ALK program through December – positioning the company well for upcoming value-inflection points. Its lead asset, zidesamtinib, continues to differentiate based on safety and CNS penetration, key considerations in the competitive landscape. The company anticipates a pivotal data readout from the ARROS-1 study in the first half of the year, with a top-line release followed by a full presentation at a major medical meeting. In its ALK program, NUVL expects to report pivotal data across both second- and third-line settings by year-end, creating multiple potential catalysts within the next 12 months.

Early clinical signals suggest Nuvalent, Inc. (NASDAQ:NUVL)’s ALK inhibitor may offer meaningful advantages over existing therapies, particularly in treatment durability for late-line patients. A Phase III head-to-head trial (Alcazar), designed to benchmark performance against alectinib – the current standard of care – is already underway with a 450-patient enrollment target and projected completion in 2029. From a commercial standpoint, NUVL is strategically positioned in a $2 billion ALK market, with the potential to capture a significant share as treatment paradigms evolve. The addressable market may expand meaningfully, mirroring the trajectory of the EGFR lung cancer segment, which has grown from $2 billion to over $5 billion, underscoring the long-term opportunity for investors.