13 Best Biotech Penny Stocks to Buy According to Hedge Funds

3. Cogent Biosciences Inc. (NASDAQ:COGT)

Share Price as of April 14: $4.26

Number of Hedge Fund Holders: 38

Cogent Biosciences Inc. (NASDAQ:COGT) develops precision therapies for genetically defined diseases. Its lead product candidate includes bezuclastinib (CGT9486), which is a selective tyrosine kinase inhibitor that targets mutations within the KIT receptor tyrosine kinase, such as KIT D816V mutation that drives systemic mastocytosis (SM), as well as other mutations in KIT exon 17, which are found in patients with advanced gastrointestinal stromal tumors.

In the SUMMIT trial for nonadvanced SM, patients on 100 mg of bezuclastinib showed a 56% average improvement in symptoms after 24 weeks. 76% of patients achieved more than 50% reduction. Additionally, 89% had a greater than 50% drop in serum tryptase within 4 weeks. For advanced SM patients in the APEX trial, bezuclastinib achieved a 52% overall response rate (ORR) per mIWG criteria. It rose to 83% for those on the 100 mg twice-daily dose.

Cogent expects top-line results from the SUMMIT trial in July 2025 and the APEX trial in H2 2025. It plans to submit the first NDA for bezuclastinib by the end of 2025. With $312 million in cash, which included recent ATM proceeds, the company believes it has sufficient funding into late 2026. It’s also launching Expanded Access Programs (EAP) for SM patients in the US in Q1 2025.