12 Best Growth Stocks Under $25 to Buy Now

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2. Centessa Pharmaceuticals plc (NASDAQ:CNTA)

Number of Hedge Fund Holders: 34

Share Price as of January 8, 2024: $17.32

Centessa Pharmaceuticals plc (NASDAQ:CNTA) ranks second on our list of the best growth stocks under $25 to buy now. The biotechnology company is currently conducting trials of drugs for patients with neurological, neurodegenerative, and psychiatric disorders. In the third quarter of 2024, the company made quite some progress with its trials by announcing interim data from a phase 1 trial for its novel orexin receptor 2 (OX2R) and initiated phase 2 trials for its ORX750 drug.

The company believes its strength lies in its OX2R agonist program, offering treatment for a wide range of disorders. In addition to its revolutionary drug, Centessa Pharmaceuticals plc (NASDAQ:CNTA) also halted the global clinical development of its SerpinPC drug, resulting in nearly $200 million in net savings. These savings will be allocated to its OX2R drug franchise. The company spent nearly $33.9 million in research and development in Q3 2024, up from $28.2 million during the same period in 2023, and had $518.4 million in cash and cash equivalents at the end of the quarter.

Centessa Pharmaceuticals plc (NASDAQ:CNTA) expects to use their long and short-term cash resources to fund their operations into mid-2027 before they start reporting a profit. Investors are bullish on the stock because of its future growth potential and the current pace of its operations is contributing to that.

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