10 Best Small-Cap Growth Stocks to Buy Now

4. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

3-Year Sales Growth: 36.09%

Number of Hedge Fund Holders: 26

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a pharmaceutical company that specializes in developing and selling medicines for people with rare neurological diseases. It focuses on conditions that often don’t get enough attention from other companies. Its main product is WAKIX which helps treat excessive daytime sleepiness and cataplexy in people with narcolepsy by enhancing histamine signaling in the brain. The company is also working on other treatments, including those for epilepsy and neuropsychiatric disorders, aiming to address unmet medical needs in these areas.

On February 19, Ami Fadia analyst at Needham maintained a Buy rating on the stock, however with a reduced price target of $50 from the previous target of $52. The analyst noted that the company has faced a setback as the FDA refused to accept the supplemental New Drug Application for pitolisant in treating idiopathic hypersomnia. Additionally, the Phase 3 INTUNE study also did not meet its primary endpoint. However, despite the challenges, Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is developing next-generation formulations, such as pitolisant HD. This new formulation aims to improve efficacy and bioavailability, potentially leading to better outcomes in the future. Faida sees this as a strategic move that could yield long-term benefits. The optimism stems from the company’s innovative pipeline and the significant unmet needs in the neurological disease market. It is one of the best small-cap growth stocks to buy now.