10 Best Small-Cap Healthcare Stocks To Buy Now

3. Arvinas, Inc. (NASDAQ:ARVN)

Number of Hedge Fund Holders: 33 

Arvinas, Inc. (NASDAQ:ARVN) is a clinical-stage biopharmaceutical company that specializes in developing innovative protein degradation therapeutics for the treatment of various diseases, including cancer and neurodegenerative disorders. At its core, Arvinas focuses on creating PROTAC (proteolysis targeting chimera) protein degraders, which are designed to harness the body’s natural protein disposal system to selectively eliminate disease-causing proteins.

A major catalyst for Arvinas, Inc. (NASDAQ:ARVN) is its robust clinical pipeline, particularly its lead candidate vepdegestrant (ARV-471). This PROTAC protein degrader is being developed for the treatment of patients with locally advanced or metastatic ER+/HER2- breast cancer. Vepdegestrant has shown promising results in clinical trials. In a Phase 1b trial in combination with palbociclib, it demonstrated a clinical benefit rate of 63% and an overall response rate of 41.9% in heavily pretreated patients. These results have led to the initiation of multiple Phase 3 trials, including VERITAC-2 and VERITAC-3, which could potentially lead to regulatory approval if successful.

As of Q2 2024, around 33 hedge fund holders held a stake in the stock with EcoR1 Capital being the largest stakeholder with 6,726,491 shares worth $179,059,190. The stock sports a Strong Buy rating based on 10 Wall Street Analysts. The average price target is $61.63, with forecasts between $48.00 and $87.00, indicating a 135.59% increase from the current price of $26.16.