10 Best US Stocks Under $10 to Buy Right Now

5. Rocket Pharmaceuticals Inc. (NASDAQ:RCKT)

Share Price as of March 24: $8.43

Number of Hedge Fund Holders: 45

Rocket Pharmaceuticals Inc. (NASDAQ:RCKT) is a late-stage biotechnology company that develops gene therapies for rare and devastating diseases. It focuses on both AAV and LV programs. Its pipeline targets conditions like Danon disease, Fanconi Anemia, and Leukocyte Adhesion Deficiency-I. It aims to provide life-changing treatments.

The company is invested in its cardiovascular gene therapy programs, with RP-A501 for Danon disease and RP-A601 for PKP2-ACM leading the charge. The Phase 2 pivotal study of RP-A501 is ongoing, with a program update expected in H1 2025. Data published in the New England Journal of Medicine and presented at the American Heart Association (AHA) demonstrated RP-A501’s safety and meaningful efficacy.

The Phase 1 study of RP-A601 for PKP2 arrhythmogenic cardiomyopathy (ACM) has completed enrollment in the low-dose cohort, with initial data expected in H1  2025. Internal estimates indicate that PKP2-ACM affects ~50,000 people in the US and Europe. The company’s strategy is to maintain resources on these AAV cardiovascular programs while managing its other pipeline assets to maximize value for patients and shareholders. Its cash runway, with $372.3 million in cash, cash equivalents, and investments, is expected to fund operations into Q3 2026.

Baron Health Care Fund remains confident in the company’s long-term potential due to its promising gene therapies for rare diseases and anticipated revenue generation. The fund stated the following regarding Rocket Pharmaceuticals Inc. (NASDAQ:RCKT) in its Q2 2024 investor letter:

“Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) specializes in the development of gene therapies for rare genetic diseases outside of oncology. Currently these include Danon disease, Fanconi anemia, lysosomal acid lipase deficiency, and pyruvate kinase deficiency. The first three drug treatments are slated for commercial launch by 2025, which should generate substantial revenue. Shares detracted from performance after the FDA extended the priority review period by three months for the Kresladi gene therapy for leukocyte adhesion deficiency, potentially influenced by sluggish competitive gene therapy launches from bluebird bio in sickle cell disease and BioMarin in hemophilia B. Given the lifesaving nature of Rocket’s therapies and the high unmet need for each of these life ending diseases, we retain conviction in our investment.”