10 Best High Short Interest Stocks to Buy Now

6. Merus (NASDAQ:MRUS)

Short % of Float As of April 16: 10.79%

Number of Hedge Fund Holders: 56

Merus (NASDAQ:MRUS) is a clinical-stage immuno-oncology company that develops antibody therapeutics in the Netherlands. Its bispecific antibody candidate pipeline includes BIZENGRI, which received FDA approval as the first and only treatment indicated for adults with advanced unresectable or metastatic pancreatic adenocarcinoma or NSCLC that harbor a neuregulin 1 (NRG1) gene fusion.

This approval was granted under accelerated approval based on overall response rate (ORR) and duration of response (DOR) observed in clinical trials. Continued approval for these indications may be contingent upon verification and description of clinical benefit in confirmatory trials. For BIZENGRI’s commercialization and revenue generation in the US, Merus has exclusively licensed the rights to Partner Therapeutics.

The success of this candidate will depend on its adoption by physicians. The requirement for confirmatory trials to verify the clinical benefit could also impact the long-term success and continued approval of BIZENGRI. Although collaboration revenue for 2024 decreased to $36.1 million compared to $43.9 million in 2023, the approval and subsequent commercialization of BIZENGRI represent a new revenue driver moving into 2025 and beyond.

TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Merus N.V. (NASDAQ:MRUS) in its Q2 2024 investor letter:

“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. A new addition this quarter is Merus N.V. (NASDAQ:MRUS), a clinical-stage immune-oncology biotechnology company. Their pipeline consists of several programs targeting solid tumors with various bispecific antibodies.”