8 Hot Penny Stocks To Invest In According to Hedge Funds

2. Nuvation Bio Inc. (NYSE:NUVB)

Share Price: $2.34

Year to Date Performance: 54.97%

Number of Hedge Fund Holders: 35

Nuvation Bio (NYSE:NUVB) is a biopharmaceutical company that develops therapeutic and differentiated candidates to tackle the gaps in oncology. It is advancing several clinical-stage candidates, including a bromodomain and extra-terminal (BET) inhibitor, a ROS1 inhibitor, a mutant isocitrate dehydrogenase 1 (mIDH1) inhibitor, and a drug-drug conjugate (DDC).

The company has an elaborate portfolio of development candidates, including safusidenib (mIDH1), taletrectinib (ROS1), NUV-1511 (DDC), and NUV-868 (BET). Safusidenib, an oral, potent, targeted inhibitor of mIDH1, is under evaluation in a global Phase II trial in patients with low-grade IDH1-mutant glioma. Taletrectinib is an oral, potent, CNS-active, selective, ROS1 inhibitor that caters explicitly to the potential treatment of ROS1-positive non-small cell lung cancer (NSCLC). Furthermore, NUV-868, a BD2-selective oral small molecule BET inhibitor, inhibits BRD4. The company is conducting a Phase I/II study of NUV-1511.

Nuvation (NYSE:NUVB) is continually progressing in these studies. It published safety and efficacy data from pivotal Phase 2 TRUST-I clinical study of taletrectinib in the Journal of Clinical Oncology and presented it at the 2024 American Society of Clinical Oncology (ASCO) Annual Meeting. It also presented pooled data from the pivotal Phase 2 TRUST-I and TRUST-II studies at the European Society of Medical Oncology (ESMO) Congress 2024. This will support the company’s planned New Drug Application (NDA) in the United States.

It is also continuing to dose escalate in a Phase 1/2 study of NUV-1511, its first clinical-stage drug-drug conjugate, and is progressing the global Phase 2 study of safusidenib. It is exploring the next steps for NUV-868 in new indications and has shifted focus to its late-stage pipeline for preparations to potentially bring taletrectinib to patients in the US in 2025. The company boasts a strong balance sheet with cash, cash equivalents, and marketable securities of $577.2 million as of June 30, 2024. It takes the second spot on our list of the 8 hot penny stocks to invest in according to hedge funds.