7 Best NASDAQ Stocks Under $5

5. Geron Corporation (NASDAQ:GERN)

Stock Price as of September 27: $4.57

Number of Hedge Fund Holders: 26

Geron Corporation (NASDAQ:GERN) is a biopharmaceutical company that has recently made significant strides in the treatment of certain blood disorders, specifically lower-risk myelodysplastic syndromes (LR-MDS).

With the recent approval of its first drug, Rytelo (imetelstat), it has introduced a groundbreaking telomerase inhibitor into the market. The innovative treatment is aimed at adult patients suffering from LR-MDS who experience anemia and require frequent blood transfusions.

The approval marks a historic moment, as Rytelo is the first telomerase inhibitor to gain clearance from the U.S. Food and Drug Administration (FDA), setting a new standard in the management of this condition.

The mechanism of Rytelo focuses on inhibiting telomerase, an enzyme that cancer cells exploit to promote uncontrolled growth. By targeting this enzyme, Rytelo aims to affect the cancerous cells present in the bone marrow, offering a potential lifeline to patients with limited treatment options.

Many individuals suffering from LR-MDS deal with symptoms such as fatigue and a heightened risk of infections, often made worse by ineffective standard therapies. The introduction of Rytelo could significantly improve the quality of life for these patients by reducing the frequency of blood transfusions they require.

In the initial weeks following its launch in June, Geron’s (NASDAQ:GERN) management expressed optimism regarding Rytelo’s reception within the medical community. As of July 31, management estimated that approximately 160 patients had already received the treatment, a promising start for a new product in its early stages. The early adoption reflects a positive response to Rytelo and suggests that it may quickly become an essential option for treating LR-MDS.

Additionally, as of June 30, 2024, the company had approximately $430.4 million in cash, cash equivalents, and marketable securities. The company is 5th on our current list of stocks.

In the second quarter, 26 hedge funds tracked by Insider Monkey had stakes in Geron (NASDAQ:GERN), with total positions worth $907.925 million. As of June 30, RA Capital Management is the most significant shareholder in the company with a stake worth $195.898 million.