10 Hot Biotech Stocks Under $5

3. Compass Therapeutics, Inc. (NASDAQ:CMPX)

Potential Upside: 397.20%

Number of Hedge Fund Holders: 14

Compass Therapeutics, Inc. (NASDAQ:CMPX) produces antibody-based therapies for various cancers. This company’s main candidates include tovecimig (CTX-009), a bispecific antibody targeting DLL4 and VEGF-A; CTX-471, a CD137 agonist; and CTX-10726, a PD-1 x VEGF-A bispecific antibody.

Financially, Compass Therapeutics, Inc. (NASDAQ:CMPX) ended 2024 with $127 million in cash, securing operations into 2027. General and administrative (G&A) expenses grew to $15.1 million from $12.2 million, while research and development (R&D) expenses rose to $42.3 million from $38.1 million. Despite spending $45 million on operations, Compass maintained financial stability by raising $18 million through its ATM program.

On the clinical side, Compass Therapeutics, Inc. (NASDAQ:CMPX) is advancing several promising programs. The Phase 2/3 COMPANION-002 trial for tovecimig in advanced biliary tract cancer is fully enrolled, with results expected by the end of Q1 2025. An investigator-sponsored study (IST) at MD Anderson will soon begin administering tovecimig in first-line BTC. Additionally, the company plans to start a Phase 2 trial for DLL4-positive colorectal cancer in mid-2025.

Beyond tovecimig, Compass is developing CTX-10726, a PD-1 x VEGF-A bispecific antibody, with an IND filing planned for late 2025. The company is also advancing CTX-471 into Phase 2 trials for NCAM/CD56-expressing tumors. Compass Therapeutics, Inc. (NASDAQ:CMPX) is also progressing CTX-8371, a PD-1 x PD-L1 bispecific checkpoint inhibitor, with early trial data expected in late 2025.

With solid finances and upcoming clinical milestones, Compass Therapeutics, Inc. (NASDAQ:CMPX) remains a hot biotech stock to watch.