Top 10 Small Cap Stocks to Buy with the Highest Upside Potential

7. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

Analyst Upside: 47.81%

Market Cap: $1.95 billion 

Number of Hedge Fund Holders: 25

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage pharmaceutical company that develops and commercializes therapies to treat neurological disorders. Its product, WAKIX, is a molecule that increases histamine signaling in the brain by binding to H3 receptors. The company has one of the strongest pipelines for people with rare neurological diseases.

Its pipeline now includes three orphan rare Central Nervous System (CNS) franchises that treat CNS conditions. Investors are bullish on the stock as each of its franchises has a peak sales potential of $1 billion to $2 billion. The company’s pipeline also includes 8 assets across 13 development programs, of which 3 are in pivotal Phase 3 trials, and a fourth is in the initiation process.

Therefore, Harmony Biosciences Holdings, Inc.’s (NASDAQ:HRMY) current pipeline has the potential to deliver more than $3 billion in net revenue in the future, if successful. The company is continually active in business development and is expanding its pipeline further. With around $505 million in cash, cash equivalents, and investments as of September 30, 2024, the company is in a strong financial position to take on additional business development opportunities.