New York, USA – The small biotech sector has faced significant challenges in 2024, trailing behind major indices such as the NASDAQ and S&P 500. Despite the overall market growth, the SPDR® S&P Biotech ETF has only seen a modest increase of around three percent this year, with a substantial portion of gains driven by technology giant Nvidia Corporation.

Looking ahead, the Federal Reserve’s decision to cut interest rates could potentially benefit the high beta sectors of the market, including the small biotech industry. Furthermore, an increase in mergers and acquisitions activity within the sector could provide a significant boost. As we move forward into the second half of 2024, there are three small-cap biotech companies that are showing promise and could deliver positive returns for investors.

First up is Altimmune (ALT), a player in the GLP-1 weight loss space. Despite facing challenges following the unexpected passing of its CEO, the company has shown resilience with positive trial data. Altimmune’s primary obesity candidate pemvidutide has demonstrated promising results, showcasing its potential to compete with other established drugs in the market.

Intellia Therapeutics (NTLA), a gene therapy company, has also made significant strides with its candidate for hereditary angioedema. The Phase 1 results have been impressive, indicating the potential for a curative treatment in the near future. With Phase 2 data on the horizon, the company is on track to initiate a pivotal Phase 3 trial by the end of the year.

Mirum Pharmaceuticals (MIRM) has seen success with its drug Livmarli, which has shown strong sales growth. Additionally, the company’s pipeline asset volixibat has demonstrated positive results in treating chronic liver diseases. With analyst firms reissuing Buy ratings and upward price target revisions, Mirum Pharmaceuticals is poised for further growth in the market.

Overall, these three small-cap biotech companies are positioned for a strong second half of 2024, especially if market sentiment towards the sector improves in the coming months. Investors should keep an eye on these companies as they continue to innovate and deliver positive outcomes in the biotech industry.