Core Insights - Arquitos Capital Management achieved a net return of 29.6% in Q3 2025, resulting in year-to-date gains of 66.8% [1] - The firm focuses on a select group of companies and is willing to hold investments for many years to realize their value [1] Company Highlights - Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company that addresses unmet patient needs in the U.S. [2] - Liquidia's stock experienced a one-month return of 21.31% and a remarkable 196.82% increase over the past 52 weeks [2] - As of December 10, 2025, Liquidia's stock closed at $32.68, with a market capitalization of $2.843 billion [2] Investment Strategy - Arquitos Capital Management's exposure to Liquidia Corporation is primarily through long-dated call options, indicating strong conviction in the company's long-term potential [3] - Liquidia's share price rose from $11.76 at the beginning of the year to $22.74 at the end of Q3 2025 [3]

Fund Performance - The Summers Value Fund LP achieved a net return of 20.4% in Q3 2025, outperforming the Russell 2000 Index ETF (12.4%) and the Russell 2000 Value Index ETF (12.5%) [2] - Year-to-date, the Fund is up 4.9%, lagging behind the IWM (10.3%) and IWN (8.9%) [2] - Since inception, the Fund has delivered a 12.2% annualized net return compared to 6.8% for IWM and 6.1% for IWN [2][3] Healthcare Sector Overview - The healthcare sector has faced challenges leading to underperformance against broader indexes, influenced by regulatory uncertainty from new FDA leadership and budget pressures at federal agencies [4] - Investors withdrew approximately $13 billion from healthcare funds in 2025, indicating a record annual outflow, while large-cap stocks saw $224 billion in inflows [5] - Despite negative sentiment, the healthcare sector is viewed as defensive and growing, with potential for disciplined investors to find opportunities [5][6] Investment Opportunities - The Fund has increased exposure to biopharma stocks, anticipating outperformance due to an innovation cycle and potential acquisitions by large-cap companies [6] - Notable contributors to the Fund's performance in Q3 included Zimvie (124% acquisition premium), Liquidia (strong sales of Yutrepia), and Consensus Cloud Solutions (return to positive revenue growth) [7] - The Fund initiated a position in uniQure following promising Phase 3 results for its gene therapy drug, which showed a 75% reduction in disease progression [9] Position Updates - Journey Medical, with a market cap of $175 million, launched Emrosi for rosacea treatment, with annualized sales approaching $30 million and potential peak sales exceeding $100 million [12] - Ligand Pharmaceuticals, valued at $3.7 billion, operates as a royalty aggregator and is expected to see strong performance from its drugs Ohtuvaryre and Filspari, with blockbuster potential [13][14] - The Fund's top five holdings include Electromed, Consensus Cloud Solutions, Liquidia, Spok Holdings, and Ligand Pharmaceuticals, with a significant allocation to pharmaceutical and biotechnology stocks [10]

Core Insights - Liquidia Corporation (NASDAQ:LQDA) is recognized as a promising small-cap biotech stock with significant upside potential according to analysts [1] - Raymond James has raised its price target for Liquidia from $41 to $47, maintaining a "Strong Buy" rating, driven by a 75% growth in U.S. prostacyclin revenue from YUTREPIA [2] - The company reported Q3 2025 results with YUTREPIA net sales of $51.7 million and achieved profitability earlier than expected [3] Financial Performance - Liquidia reported a net loss of $3.5 million, or $0.04 per diluted share, for Q3 2025, but achieved a positive adjusted EBITDA of $10.1 million [3] - The company ended the quarter with $157.5 million in cash and reported a net cash flow of $5 million in September [4] - The peak sales estimates for YUTREPIA were raised to $2 billion from $1.1 billion due to strong early launch performance [2] Market Position and Strategy - Over 1,500 patients have been enrolled in YUTREPIA therapy, with more than 2,000 prescriptions written, indicating strong market uptake [3] - Liquidia is exploring additional clinical applications for idiopathic pulmonary fibrosis (IPF) and pulmonary fibrosis (PPF) [4] - The company utilizes proprietary PRINT and TRIA platforms to develop therapies for pulmonary arterial hypertension and related cardiopulmonary diseases [5]

Core Viewpoint - Small-cap biotech stocks are experiencing a resurgence, driven by market rotation and improving technical indicators, with healthcare emerging as a constructive sector [2][4] Industry Overview - The Health Care Select Sector SPDR Fund (XLV) has increased by 11.09% in 2025, while the iShares Biotechnology ETF has gained approximately 25% year-to-date [2][3] - Analysts suggest that capital is flowing out of high-flying AI stocks into more attractive healthcare and biotech opportunities [3][4] M&A Activity - Increased mergers and acquisitions (M&A) activity in the biotech sector has been noted, with significant deals including Pfizer's $10 billion acquisition of Metsera and Roche's $3.5 billion acquisition of 89bio [4][5] - This M&A activity is expected to bolster potential upside for both large-cap and small-to-mid-cap biotech companies [4] Methodology for Stock Selection - The list of the best small-cap biotech stocks was curated based on companies with market capitalizations between $300 million and $2 billion, focusing on those with the highest upside potential as of November 10, 2025 [8] Company Highlights - **Viridian Therapeutics, Inc. (NASDAQ:VRDN)**: - Upside potential of 36.71% with a cash position of $888 million and key patient enrollments in late-stage clinical studies [10][11][12] - **UroGen Pharma Ltd. (NASDAQ:URGN)**: - Upside potential of 49.17%, reporting a significant increase in demand revenue and a cash position of $127.4 million [14][15][16] - **Liquidia Corporation (NASDAQ:LQDA)**: - Upside potential of 55.49%, with YUTREPIA achieving profitability earlier than expected and a cash position of $157.5 million [19][20][22]

Core Insights - Liquidia Corp. (NASDAQ:LQDA) has shown significant stock performance, rising by 10.67% to close at $27.91, nearing its 52-week high due to strong demand for its pulmonary hypertension treatment [1][3]. Financial Performance - In Q3, Liquidia reported total revenues of $54 million, a remarkable increase of 1,134% from $4.4 million in the same period last year, driven primarily by the sales of its Yutrepia treatment [2][3]. - Product sales contributed $51.7 million to the total revenues, while service revenues accounted for $2.67 million [3]. - The company managed to reduce its net loss by 89% to $3.5 million from $31.03 million in the comparable period last year [3]. Market Demand and Growth Strategy - The CEO of Liquidia highlighted the strong momentum of Yutrepia's launch, noting over 2,000 unique prescriptions and shipments to more than 1,500 patients, supported by over 600 prescribers nationwide as of October 30, 2025 [4]. - The company is positioned for sustained growth and profitability, with plans to invest in expanding Yutrepia's therapeutic profile and advancing L606 into pivotal trials [5].

Core Insights - U.S. stocks experienced a decline, with the Nasdaq Composite dropping over 350 points on Tuesday [1] - Henry Schein Inc reported third-quarter results that exceeded estimates, leading to a significant increase in its share price [1] Company Performance - Henry Schein Inc (NASDAQ:HSIC) posted adjusted EPS of $1.38, surpassing market expectations of $1.28, and quarterly sales of $3.339 billion compared to the anticipated $3.276 billion, resulting in a 9.5% increase in share price to $70.77 [1] - Tactile Systems Technology, Inc. (NASDAQ:TCMD) saw a 47.6% rise in shares to $23.35 after reporting third-quarter EPS and sales above expectations and raising FY2025 sales guidance [4] - Hertz Global Holdings Inc (NASDAQ:HTZ) surged 40.7% to $6.95 following better-than-expected quarterly earnings [4] - Kforce Inc. (NYSE:KFRC) gained 35.6% to $33.23 after reporting better-than-expected third-quarter financial results [4] - iHeartMedia Inc (NASDAQ:IHRT) surged 28% to $3.72 [4] - Terns Pharmaceuticals Inc (NASDAQ:TERN) increased by 23.5% to $17.33 after announcing data from the CARDINAL trial of TERN-701 for presentation at a major conference [4] - Paymentus Holdings Inc (NYSE:PAY) rose 21.6% to $34.78 after reporting better-than-expected fourth-quarter results and raising FY25 sales guidance [4] - Xometry Inc (NASDAQ:XMTR) increased by 20.6% to $58.60 after reporting better-than-expected third-quarter results and issuing FY25 sales guidance above estimates [4] - Sanmina Corp (NASDAQ:SANM) gained 17.2% to $164.52 after reporting better-than-expected fourth-quarter results and issuing first-quarter guidance above estimates [4] - Inspire Medical Systems Inc (NYSE:INSP) surged 16.1% to $85.86 after reporting better-than-expected third-quarter results and raising FY25 GAAP EPS guidance [4] - Wingstop Inc (NASDAQ:WING) increased by 15.3% to $246.80 after reporting better-than-expected quarterly EPS results [4] - SGHC Ltd (NYSE:SGHC) rose 13.3% to $11.96 after reporting better-than-expected quarterly results and raising FY25 sales guidance [4] - Upwork Inc (NASDAQ:UPWK) gained 12.2% to $17.55 following positive quarterly earnings [4] - Waters Corp (NYSE:WAT) increased by 7.7% to $372.23 after reporting better-than-expected third-quarter results and raising FY25 guidance [4] - Expeditors International of Washington Inc (NYSE:EXPD) gained 7.6% to $131.81 following better-than-expected earnings [4] - Liquidia Corp (NASDAQ:LQDA) rose 7.4% to $27.08 after Needham raised its price target from $36 to $52 [4] - Fabrinet (NYSE:FN) increased by 7.2% to $474.79 following positive earnings [4]

Core Insights - Argenx and Insmed reported strong third-quarter earnings, exceeding analyst expectations, which positively impacted their stock prices [1][2][3]. Company Performance - Argenx reported an adjusted profit of $5.18 per share on sales of $1.13 billion, significantly surpassing analyst projections of $4.49 per share and $1.07 billion in sales. Year-over-year, earnings increased by 273% and sales rose by 97% [2]. - Insmed reported a loss of $1.75 per share on sales of $142.3 million, which was worse than the expected loss of $1.28 per share and sales of $115.4 million. In the same period last year, Insmed lost $1.27 per share with sales of $93.4 million [3]. Sales Guidance - Insmed raised its guidance for Arikayce sales to a range of $420 million to $430 million, up from the previous estimate of $405 million to $425 million. Analysts had predicted $423.5 million in sales for Arikayce this year [4]. Stock Market Reaction - In premarket trading, Argenx shares rose by 1.5% to $834.23, while Insmed shares surged by 11.1% to $185.50. Argenx ranks No. 49 on the IBD 50 list of elite growth stocks with a strong IBD Digital Composite Rating of 98 [5]. - Insmed's stock has more than doubled this year, driven by enthusiasm for its experimental drug, treprostinil palmitil inhalation powder (TPIP), which has the potential to compete with existing treatments for high blood pressure in the lungs [6].

Company Overview - Niagen Bioscience (NAGE) is expected to report flat earnings of $0.02 per share for the quarter ended September 2025, with revenues projected at $31.3 million, reflecting a 22.4% increase year-over-year [3][12]. Earnings Expectations - The upcoming earnings report is scheduled for November 4, and the stock may experience upward movement if earnings exceed expectations, while a miss could lead to a decline [2][12]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -33.33% for Niagen Bioscience, suggesting analysts have become bearish on the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Niagen Bioscience exceeded the consensus EPS estimate of $0.02 by delivering earnings of $0.04, resulting in a surprise of +100.00% [13]. - The company has successfully beaten consensus EPS estimates in all of the last four quarters [14]. Industry Context - In the broader context of the Zacks Medical - Biomedical and Genetics industry, Liquidia Corporation (LQDA) is expected to report a loss of $0.45 per share, with revenues anticipated to rise by 250.6% year-over-year [18][19].

Core Insights - Arcutis Biotherapeutics reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.10 per share, and showing improvement from a loss of $0.33 per share a year ago, resulting in an earnings surprise of +160.00% [1] - The company achieved revenues of $99.22 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 14.87% and significantly up from $44.76 million in the same quarter last year [2] - Arcutis Biotherapeutics has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The company has shown a strong performance in the stock market, with shares increasing approximately 41% since the beginning of the year, compared to the S&P 500's gain of 16.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $99.05 million, and for the current fiscal year, it is -$0.44 on revenues of $332.77 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Arcutis Biotherapeutics belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - The performance of Arcutis Biotherapeutics may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

Core Insights - United Therapeutics (UTHR) is set to expand Tyvaso's label in the respiratory disease sector following positive results from the late-stage TETON-2 study, which demonstrated clinical benefits for idiopathic pulmonary fibrosis (IPF) patients after a year of treatment with nebulized Tyvaso [1][5] Study Results - The TETON-2 study achieved its primary endpoint, showing a 95.6 mL improvement in absolute forced vital capacity (FVC) for Tyvaso-treated patients compared to placebo, indicating enhanced lung function [2] - Treatment benefits were consistent across various patient subgroups, including those with different background therapies, smoking statuses, or oxygen use, and the safety profile was consistent with previous Tyvaso studies [2][6] Regulatory Plans - UTHR intends to meet with the FDA by the end of this year to potentially expedite the regulatory review process once results from the TETON-1 study are available, which is expected in the first half of 2026 [4][11] Market Potential - Approximately 100,000 IPF patients are estimated to be living in the United States, representing a significant untapped market with potential sales from the IPF indication possibly exceeding those from pulmonary arterial hypertension (PAH) [8] Competitive Landscape - The success of Tyvaso in IPF may also benefit smaller biotech companies like Insmed (INSM) and Liquidia Corporation (LQDA), which are developing or marketing treprostinil products [9] - Insmed is working on treprostinil palmitil inhalation powder (TPIP), which offers a once-daily dosing option, potentially positioning it as a competitor in the IPF space [10][12] - Liquidia has recently received FDA approval for Yutrepia, an inhaled treprostinil product, marking it as the first inhaled competitor for PAH and PH-ILD indications, and may also explore its application in IPF [13]