10 Most Promising Cancer Stocks According to Hedge Funds

3. Merus NV (NASDAQ:MRUS)

Average Analyst Upside: 61.05%

Number of Hedge Fund Holders: 48

Merus NV (NASDAQ:MRUS) is a biotechnology firm focused on developing antibody-based therapies to treat cancer, with multiple programs in its pipeline, including Zenocutuzumab and Petosemtamab (MCLA-158).

On October 24, UBS initiated coverage on Merus NV (NASDAQ:MRUS) with a Buy rating, spotlighting the potential of its lead candidate, petosemtamab. UBS projects petosemtamab’s risk-adjusted peak sales at $880 million and anticipates favorable Phase 2 results in 2024.

In its Q3 earnings report, Merus NV (NASDAQ:MRUS) reported a net loss of $99.9 million, a significant increase from the $23 million net loss in the same quarter last year, driven by higher research and administrative expenses. Despite these losses, Merus NV (NASDAQ:MRUS) strengthened its financial position, reporting $433 million in cash and cash equivalents, up from $204 million at the end of 2023, fueled by successful public offerings and strategic partnerships.

TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Merus N.V. (NASDAQ:MRUS) in its Q2 2024 investor letter:

“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. A new addition this quarter is Merus N.V. (NASDAQ:MRUS), a clinical-stage immune-oncology biotechnology company. Their pipeline consists of several programs targeting solid tumors with various bispecific antibodies.”