Growth stocks have abruptly lost momentum. After a sizzling start to the year, growth equities have broadly turned southward since the start of fall, thanks to a multitude of factors such as rising bond yields, high interest rates, and global instability. Keeping with this theme, the Vanguard Growth Index Fund raced higher by an impressive 36% through the first eight months of the year. However, this closely watched growth fund has dipped by nearly 5% since hitting this high-water mark less than two months ago.

Growth stocks, though, can reverse course in the blink of an eye. In the biopharmaceutical space, for example, large drug manufacturers often buy up smaller competitors at enormous premiums in an effort to restock their product portfolios and clinical pipelines. As a result, it's not unheard of for big pharma to bargain hunt when the market becomes irrational regarding developmental biotech valuations. Here are two small-cap drug companies trading near their 52-week lows that may be worth buying for both their organic growth prospects and appeal as potential buyout candidates.

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Source Fool.com