7 Best Nano Cap Stocks To Invest In

1. Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX)

Market Cap: $243.73 Million

Number of Hedge Funds: 26

Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) is a biopharmaceutical company that develops treatments for neurodegenerative diseases, which are conditions that lead to the gradual degeneration of the nervous system. They are a commercial-stage company working on two main drugs AMX0035 and AMX0114.

The company has made significant strides in developing treatments for rare metabolic and neurodegenerative diseases, particularly through its acquisition of Avexitide, a promising drug candidate. Avexitide is a GLP-1 receptor antagonist that is ready for Phase 3 clinical trials. It has received both Breakthrough Therapy Designation and Orphan Drug Designation from the FDA for treating conditions related to hyperinsulinemic hypoglycemia.

The company is also advancing its other drug candidate, AMX0035, which is being studied for treating Wolfram syndrome, a rare genetic disorder that leads to severe complications like diabetes and neurodegeneration. Recent data from trials shows promising results.

Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) plans to initiate the Phase 3 program for Avexitide in PBH by early 2025, with topline data expected in 2026. This aligns with their commitment to addressing unmet medical needs in these rare medical conditions.

It is one of the best nano cap stocks to invest in and was held by 26 hedge funds in Q2 2024 as per Insider Monkey’s database with stakes totaling $34.39 million. During the second quarter of 2024, the company had $309.8 million in cash, cash equivalents, and short-term investments. Moreover, management expects the cash to be sufficient to fund operations till 2026.

While we acknowledge the potential of Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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