10 Hot Biotech Stocks Under $5

5. Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN)

Potential Upside: 285.00%

Number of Hedge Fund Holders: 26

Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN) is a clinical-stage biotechnology company. It develops immunology treatments to improve organ transplant outcomes and treat autoimmune conditions. Its main drug, tegoprubart, aims to prevent rejection in kidney, liver, and pancreatic islet cell transplants.

For Q3 ended September 30, 2024, Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN) reported a balance of $78.2 million in cash, not including its recent $135 million financing. Research and development costs rose to $16.5 million due to an increase in clinical trials, including the Phase 1b and Phase 2 BESTOW studies. General and administrative costs grew to $4 million from higher service and operational costs, though the company’s recent $135 million financing round should fund operations through 2026.

Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN) hit key milestones recently as it completed enrollment for its Phase 2 BESTOW trial of tegoprubart for kidney transplants four months early. This trial will assess tegoprubart’s ability to prevent organ rejection, with results expected in late 2025. Updated Phase 1b data presented at the American Transplant Congress (ATC) showed improved kidney function in patients after transplant.

Moreover, Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN) reported positive results in an investigator-initiated trial at UChicago Medicine. The trial revealed that tegoprubart helped type 1 diabetes patients achieve insulin independence after islet transplantation. This could make tegoprubart therapy a safer alternative to current treatments with harsh side effects.

Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN) also contributed to a breakthrough at Massachusetts General Hospital in a groundbreaking xenotransplantation. Tegoprubart showed promising results when used in a genetically modified pig kidney transplant, showcasing its value for xenotransplantation. With the rising need for new organ transplant options, Eledon might emerge as a frontrunner in cutting-edge immunosuppressive treatments. This could not only create new revenue streams but also broaden the company’s market footprint.

With Eledon Pharmaceuticals, Inc.’s (NASDAQ:ELDN) strong finances and advancing clinical programs, it remains a hot biotech stock for those interested in innovative immunosuppression therapies.