Small caps last week: Anthropic IPO beneficiaries, GLP-1 craze winners, biotech rally

Last week, Anthropic's confidential IPO filing put renewed focus on stocks tied to the AI developer, and Oninvest looked at four smid caps that could benefit from a potential Anthropic debut. Meanwhile, protein maker Glanbia continued to rally as growing use of GLP-1 weight-loss drugs boosts demand for supplements, while Regentis Biomaterials became one of the market's biggest winners after canceling a secondary offering. These are the top small-cap stories for June 15-19 in our weekly recap.

In early June, Anthropic, the creator of the Claude AI model, confidentially filed for a U.S. IPO, slightly ahead of rival OpenAI. A successful listing could further boost investor enthusiasm around the sector and signal that AI is moving beyond experimentation and toward large-scale commercial adoption.

Oninvest analyst Aldiyar Anaurbekov examined four smid-cap stocks tied to Anthropic that investors may want to watch ahead of a listing. They include Lumen Technologies and Asana, which provide infrastructure and services to Anthropic. The other two firms have integrated Anthropic’s models into their products and services: UiPath and GitLab.

The popularity of GLP-1 weight-loss drugs has boosted demand for protein supplements, and shares of Irish mid-cap protein powder maker Glanbia have gained more than 70% on the London Stock Exchange over the last 12 months. Bloomberg notes that the rally has been driven by medical recommendations encouraging patients taking obesity drugs to increase protein intake in order to preserve muscle mass. One risk for Glanbia is rising whey protein costs, the key ingredient in protein products. However, the company has “a strong playbook in place for managing this volatility,” Bloomberg quoted the company as saying.

Glanbia is “a rare example of a company in the food or ingredients space that has been a beneficiary rather than victim of rising GLP-1 penetration,” Barclays analyst Alex Sloane told Bloomberg. According to MarketScreener data, six analysts rate the stock a "buy," while three have a "hold" recommendation. None recommend "sell."

Regentis Biomaterials, an Israeli developer of implants for bone and cartilage regeneration, withdrew a previously announced secondary offering. In May, Regentis announced it planned to raise $10 million through the share sale, but on Monday abandoned those plans, meaning existing shareholders avoided dilution. Following the announcement, the company’s shares surged 527% on the New York Stock Exchange on Monday, reaching an all-time high.

The company’s lead product, GelrinC, is a biodegradable hydrogel implant that is injected into a joint to help restore damaged tissue. The product is currently in clinical trials in the U.S. and has been approved for use in Europe. In the U.S. alone, Regentis estimates its addressable market at $3 billion, while no approved off-the-shelf treatment is currently available, the company notes.

Shares of Canadian phosphate developer First Phosphate, which is focused on materials used in electric-vehicle batteries, rose more than 18% intraday on the Frankfurt Stock Exchange on Thursday. The catalyst was the company’s announcement at the G7 summit of new investment and offtake agreements under the Critical Minerals Resilience and Production Alliance, a G7 initiative aimed at reducing dependence on China in strategic raw materials.

The company said it had received a letter of interest from the Export and Investment Fund of Denmark, as well as another from the Italian Export Credit Agency, SACE, and industrial partners. Year to date, First Phosphate shares have gained around 53%, while all four analysts covering the stock rate it a "buy."