7 days ago
Fulcrum Therapeutics, Inc. (FULC): A Bull Case Theory
We came across a bullish thesis on Fulcrum Therapeutics, Inc. (FULC) on Stock Pursuit's Substack. In this article, we will summarize the bulls' thesis on FULC. Fulcrum Therapeutics, Inc. (FULC)'s share was trading at $6.44 as of 23rd May. FULC's trailing P/E was 312.50 according to Yahoo Finance.
A scientist in a lab conducting research on cell-based therapeutics and biotechnology.
Fulcrum Therapeutics (FULC) recently surged over 110% from around $3.30 to $7.00, reflecting growing optimism but also presenting a prime opportunity to take profits. The company's lead candidate, Pociredir (FTX-6058), is an oral small molecule in Phase 1b trials aimed at treating Sickle Cell Disease (SCD) by increasing fetal hemoglobin expression. While early data are encouraging, larger trials are needed to confirm efficacy and safety, especially following a prior clinical hold related to concerns over EED inhibitors.
Analysts have raised their peak sales forecasts to roughly $600 million with a 50% probability of success, and Fulcrum's cash runway extends into 2027. Market dynamics favor Pociredir due to Pfizer's withdrawal of Oxbryta and slow adoption of gene therapies, creating scarcity value for new oral treatments. Beyond SCD, Fulcrum is developing programs for inherited aplastic anemias, with an Investigational New Drug application for Diamond-Blackfan anemia expected in late 2025. Despite this promise, history shows that small-cap pharma stocks can experience volatile reversals after big gains, so locking in profits while retaining a small position for potential upside on drug results seems prudent.
The broader biotech sector, historically avoided by the author, has recently become more attractive due to technological advances and compelling net cash positions, as demonstrated by previous successes like Somalogic. Overall, Fulcrum represents a high-risk, high-reward opportunity in a niche with growing unmet medical needs, but caution and disciplined profit-taking remain essential given the sector's volatility.
Fulcrum Therapeutics, Inc. (FULC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held FULC at the end of the first quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of FULC 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 timeframe. If you are looking for an AI stock that is more promising than FULC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
