We recently compiled a list of the 10 Hottest Smid-Cap Stocks So Far In 2025. In this article, we are going to take a look at where Sana Biotechnology, Inc. (NASDAQ:SANA) stands against the other smid-cap stocks.
As the name suggests, smid-cap stocks have a valuation between $200 million and $20 billion. The definition is pretty flexible, but I’ll be working with the broadest one. Most stocks on the market fall into this category, so I think it is a good way to check the general pulse of the broader economy and look into some up-and-coming companies that may one day be the large caps of tomorrow.
We will be taking a look at some of them in this article by looking through stocks within the aforementioned market cap, sorted by their year-to-date gains so far in 2025. Do note that OTC stocks will not be included in this list.
You should keep in mind that while some of these stocks could be good buys, there is also a significant downside risk to stocks that have gained a lot recently.
A scientist working with a microscope in a laboratory, focusing on a cell of a medical experiment.
Sana Biotechnology, Inc. (NASDAQ:SANA)
YTD Performance: 82.7%
Sana Biotechnology (NASDAQ:SANA) is a company that makes medicine by engineering sales. Most of its money comes from financing and partnerships since the company does not generate meaningful revenue from product sales at this point. There was some buzz recently about Sana’s increased focus on type 1 diabetes and B-cell-mediated autoimmune diseases. Executives decided to cut back on certain oncology efforts in order to extend their cash runway into 2026, and leadership believes this emphasis on immunologic diseases may speed up development. Sana announced positive clinical results in type 1 diabetes, and the company seems excited about its hypoimmune platform. Investigators have reported promising signs that these modified cells can avoid immune detection while producing some real benefits for patients.
If anyone is diving into Sana’s financials, there is a lot to unpack. Net loss for the three months ending September 30, 2024, was $59.9 million, and management reported $199 million in cash, cash equivalents, and marketable securities. This cash should hold them over for a while, though there is a chance their operating cash burn for 2024 might rise above $200 million because of recent changes. Meanwhile, research and development costs went down, and top executives believe this will help contain expenses and focus the pipeline.
In my opinion, the stock’s big jump this year is tied to optimism about the company’s reorganized pipeline and early clinical data. People are more interested in new therapies for long-standing problems like type 1 diabetes, and Sana is targeting exactly that. There is always the risk that a pre-commercial biotech might stumble, but Sana’s leadership gadgets and strategic focus seem to be fueling enthusiasm among some investors. It also helps that the company has fresh clinical trials on the horizon and a patent portfolio that might attract partnerships. Time will tell whether Sana can sustain its upward momentum, but for now the company has genuine excitement around its engineered cell therapies.
Overall SANA ranks 5th on our list of the hottest smid-cap stocks so far in 2025. While we acknowledge the potential of SANA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SANA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025
Disclosure: None. This article was originally published at Insider Monkey.
