10 Most Promising Biotech Stocks According to Hedge Funds

2. Cytokinetics Inc. (NASDAQ:CYTK)

Average Upside: 48.02%

Number of Hedge Fund Holders: 64

Cytokinetics Inc. (NASDAQ:CYTK) is a biopharmaceutical company focused on developing muscle activators and inhibitors as treatments for diseases involving impaired or declining muscle function.

The company has made notable strides in its clinical trials. Its drug candidate, aficamten, showed promising results in the SEQUOIA-HCM Phase 3 trial, prompting H.C. Wainwright to reaffirm their Buy rating. Additionally, Goldman Sachs maintained a Neutral rating after a successful Phase 1 trial of CK-586, a drug candidate targeting Heart Failure with preserved Ejection Fraction (HFpEF).

These positive trial results have set the stage for a Phase 2 clinical trial, expected to begin in Q4 2024. Cytokinetics Inc. (NASDAQ:CYTK) has also bolstered its financial standing through a strategic partnership with Royalty Pharma, securing a $575 million investment alongside a $500 million follow-on offering.

According to Insider Monkey’s second-quarter data, 64 hedge funds held bullish positions in Cytokinetics Inc. (NASDAQ:CYTK) Abhishek Trehan’s Darwin Global Management emerged as the largest stakeholder, holding 4.57 million shares valued at $246 million.