10 Hottest Smid-Cap Stocks So Far In 2025

5. Sana Biotechnology (NASDAQ:SANA)

YTD Performance: 82.7%

Sana Biotechnology (NASDAQ:SANA) is a company that makes medicine by engineering sales. Most of its money comes from financing and partnerships since the company does not generate meaningful revenue from product sales at this point. There was some buzz recently about Sana’s increased focus on type 1 diabetes and B-cell-mediated autoimmune diseases. Executives decided to cut back on certain oncology efforts in order to extend their cash runway into 2026, and leadership believes this emphasis on immunologic diseases may speed up development. Sana announced positive clinical results in type 1 diabetes, and the company seems excited about its hypoimmune platform. Investigators have reported promising signs that these modified cells can avoid immune detection while producing some real benefits for patients.

If anyone is diving into Sana’s financials, there is a lot to unpack. Net loss for the three months ending September 30, 2024, was $59.9 million, and management reported $199 million in cash, cash equivalents, and marketable securities. This cash should hold them over for a while, though there is a chance their operating cash burn for 2024 might rise above $200 million because of recent changes. Meanwhile, research and development costs went down, and top executives believe this will help contain expenses and focus the pipeline.

In my opinion, the stock’s big jump this year is tied to optimism about the company’s reorganized pipeline and early clinical data. People are more interested in new therapies for long-standing problems like type 1 diabetes, and Sana is targeting exactly that. There is always the risk that a pre-commercial biotech might stumble, but Sana’s leadership gadgets and strategic focus seem to be fueling enthusiasm among some investors. It also helps that the company has fresh clinical trials on the horizon and a patent portfolio that might attract partnerships. Time will tell whether Sana can sustain its upward momentum, but for now the company has genuine excitement around its engineered cell therapies.