12 Best German Stocks to Buy According to Hedge Funds

9. InflaRx (NASDAQ:IFRX)

Number of Hedge Fund Holders: 8

InflaRx (NASDAQ:IFRX) is a clinical-stage biopharmaceutical company that develops novel therapies for severe inflammatory and autoimmune diseases. Using its proprietary C5a technology, it’s advancing a pipeline of innovative drug candidates, which include its lead asset called vilobelimab which is currently in late-stage clinical trials across multiple indications.

The company is prioritizing its INF904 program, which is an oral C5a receptor inhibitor, due to its market potential in chronic spontaneous urticaria (CSU) and hidradenitis suppurativa (HS). Each of these represents a $1 billion-plus market. The company initiated a Phase 2a study in December 2024, which involves 75 patients, to assess various dosing regimens over 4 weeks. This aims to gather safety, pharmacokinetic, and clinical efficacy data, with topline results expected in summer 2025. These results will inform the design of a larger Phase 2b study which is planned for initiation by the end of 2025.

Beyond CSU and HS, InflaRx (NASDAQ:IFRX) is exploring INF904’s applications in other immuno-dermatology, immuno-inflammatory, nephrology, neurology, and hematology indications. INF904 demonstrates minimal inhibition of CYP3A4/5 enzymes, which is an advantage over existing C5aR inhibitors, and achieves a ≥90% blockade of C5a-induced neutrophil activation. This positions INF904 as a promising best-in-class candidate.