5 Best Small Cap Pharma Stocks to Buy

In this piece, we will take a look at the five best small cap pharma stocks to buy. If you want to gain a deeper understanding of pharma stocks, then head on over to 10 Best Small Cap Pharma Stocks to Buy.

5. Evolus, Inc. (NASDAQ:EOLS)

Number of Hedge Fund Investors in Q1 2023: 22

Evolus, Inc. (NASDAQ:EOLS) is a beauty care provider that makes and sells medicines used by people to treat facial lines, particularly those that appear between the eyebrows. The firm has some good news for investors in July as during its second quarter of 2023 earnings report, it raised full year revenue guidance.

As 2023’s first quarter ended, 22 of the 943 hedge funds part of Insider Monkey’s database had held a stake in Evolus, Inc. (NASDAQ:EOLS). James E. Flynn’s Deerfield Management is the largest shareholder out of these, owning 3.5 million shares that are worth $30 million.

4. Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH)

Number of Hedge Fund Investors in Q1 2023: 22

Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) is an American firm headquartered in Waltham, Massachusetts. It develops crucial medicines that help people suffering from deadly cancers and tumors. Analysts have penned in a nice $7 share upside to the stock.

Insider Monkey scoured through 943 hedge funds for their Q1 2023 shareholdings and discovered that 22 had invested in the firm. Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH)’s largest investor in our database is Jeremy Green’s Redmile Group through a stake worth $86 million.

3. Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN)

Number of Hedge Fund Investors in Q1 2023: 23

Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) sells treatments for nervous system disorders including epilepsy and Attention Deficit Hyperactivity Disorder (ADHD). The shares are down 4.2% over the past 12 months but are still rated Buy on average with several Strong Buy ratings as well.

As of March 2023, 23 of the 943 hedge fund portfolios studied by Insider Monkey had held Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN)’s shares. Steven Boyd’s Armistice Capital is the largest investor among these, courtesy of its $157 million investment.

2. Collegium Pharmaceutical, Inc. (NASDAQ:COLL)

Number of Hedge Fund Investors in Q1 2023: 25

Collegium Pharmaceutical, Inc. (NASDAQ:COLL) develops treatments for severe pain and sells products that target long term pain and constipation. It is another stock that is rated Stock Buy on average, and the shares offer a $12 upside.

After digging through 943 hedge funds for this year’s first quarter, Insider Monkey discovered that 25 had bought the firm’s shares. Out of these, the firm’s largest shareholder is David Rosen’s Rubric Capital Management since it owns a $78 million stake.

1. Pacira BioSciences, Inc. (NASDAQ:PCRX)

Number of Hedge Fund Investors in Q1 2023: 30

Pacira BioSciences, Inc. (NASDAQ:PCRX) develops customized drugs that are capable of targeting only select nerves as part of a pain management treatment. Like some other firms on our list, the stock is also down year to date and has lost 7% of its value so far. However, the shares are rated Strong Buy on average, and the average share price target of $61 provides a sizeable upside.

30 of the 943 hedge funds part of Insider Monkey’s Q1 2023 database had invested in Pacira BioSciences, Inc. (NASDAQ:PCRX). Israel Englander’s Millennium Management is the biggest investor with an investment worth $64.7 million.

Disclosure: None. You can also take a look at 11 High Growth Utility Stocks to Buy and 110 Undervalued Stocks to Buy According to Billionaire Joel Greenblatt.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Follow Insider Monkey on Twitter