What's Happening in Small-Cap Stocks: Betting on Anthropic's IPO, Ozempic's Beneficiary, and the Biotech Rally

Anthropic’s preparations for its IPO could open up new opportunities for its affiliated companies: Oninvest has identified four small-cap stocks that stand to benefit. Meanwhile, demand for weight-loss drugs has boosted protein producer Glanbia—its shares have surged nearly 70% over the past year. Shares of biotechnology company Regentis Biomaterials have become some of the fastest-growing on the market—their price has risen more than sixfold. Top news from June 15–19—in our roundup.

In early June, Anthropic, the creator of the AI model Claude, filed a confidential IPO application, doing so slightly ahead of its competitor OpenAI. A successful IPO for Anthropic could boost interest in the industry and signal that artificial intelligence is moving into the commercial sphere.

Oninvest analyst Aldiyar Anaurbekov has selected four small- and mid-cap companies linked to Anthropic that investors should keep an eye on ahead of the IPO. Among them are Lumen Technologies and Asana, which provide infrastructure and services to Anthropic. Two other companies have integrated Anthropic’s models into their products and services: UiPath and GitLab. Read more about each of these companies here.

The popularity of GLP-1-based weight-loss drugs, which suppress appetite, has fueled demand for protein supplements. Shares of Glanbia, an Irish mid-cap protein powder manufacturer, have risen by more than 70% over the past 12 months on the London Stock Exchange. Bloomberg reports that this trend is driven by medical recommendations: patients taking weight-loss medications are advised to consume more protein to maintain muscle mass. A risk for Glanbia is the rising cost of whey protein, the main ingredient in protein products. However, the company has a “robust action plan to manage this volatility,” according to Bloomberg.

"Glanbia is a rare example of a company in the food industry that has benefited from—rather than fallen victim to—the growing adoption of GLP-1," Barclays analyst Alex Sloan told Bloomberg. Currently, six analysts recommend buying Glanbia shares, three recommend holding, and there are no sell recommendations, according to MarketScreener.

Regentis Biomaterials, an Israeli developer of implants for bone and cartilage regeneration, has canceled its previously announced additional share offering. In May, Regentis announced its intention to raise $10 million through a stock offering, but on June 15, it abandoned those plans—a move that will prevent the dilution of existing shareholders’ stakes. Following the news, the company’s stock soared nearly 527% on June 15 on the New York Stock Exchange, reaching an all-time high.

The company’s main product— GelrinC —is a biodegradable hydrogel implant that is injected into a joint to help it heal. The product is currently undergoing clinical trials in the U.S., while in Europe it has been approved for use. Regentis Biomaterials noted that Regentis’s target market in the U.S. alone is estimated at $3 billion, and there are currently no ready-to-use treatment methods available in the country.

Shares of First Phosphate, a Canadian company engaged in the development of phosphate deposits for the production of electric vehicle batteries, rose by more than 18% in a single moment on June 18 on the Frankfurt Stock Exchange. The rise was triggered by an announcement at the G7 summit regarding new investment and commercial agreements under the Partnership for Mineral Security—a G7 initiative aimed at reducing dependence on China in the market for strategic raw materials.

The company announced that it had received two letters of intent from export credit agencies and industrial partners: one from the Danish Export-Investment Fund and the other from the Italian agency SACE and its partners. Since the beginning of the year, First Phosphate’s shares have risen by nearly 53%, and all four analysts covering First Phosphate’s stock recommend buying it.