Healthcare-focused Baker Bros. Advisors’ Top Picks: Incyte, Alexion, ACADIA & More

#3. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)

– Shares Owned by Baker Bros. as of December 31: 6.54 Million

– Value of Holding as of December 31: $1.24 Billion

Baker Brothers also remained bullish on Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) in the fourth quarter, as the stock gained almost 22%. However, this year it gave up the gains, tumbling almost 27% year-to-date. On Thursday, Citi initiated coverage of the stock with a ‘Neutral’ rating. Samuel Isaly’s Orbimed Advisors is another shareholder of Alexion, holding 2.27 million shares as of December 31.

#2. Seattle Genetics, Inc. (NASDAQ:SGEN)

– Shares Owned by Baker Bros. as of December 31: 37.29 Million

– Value of Holding as of December 31: $1.67 Billion

Baker Bros.’ stake in Seattle Genetics, Inc. (NASDAQ:SGEN) saw the largest increase among its top 10 picks. After having boosted its exposure by 4%, the fund declared holding 37.29 million shares of the mid-cap biotech company. This year, the fund continued to raise its exposure to the company and reported holding 39.81 million shares earlier this week. D E Shaw  boosted its stake by 82% over the quarter to 242,005 shares reported in its latest 13F. Shares of Seattle Genetics have lost more than 33% year-to-date, even though the company posted earnings and revenue figures for the last quarter that managed to beat the estimates.

#1. Incyte Corporation (NASDAQ:INCY)

– Shares Owned by Baker Bros. as of December 31: 19.47 Million

– Value of Holding as of December 31: $ 2.11 Billion

Finally, there’s Incyte Corporation (NASDAQ:INCY), which represents Baker Bros.’ largest position. The fund declared holding 19.47 million shares of the company and convertible bonds valued at $1.15 billion. Once again, the firm was trailed by OrbiMed Advisors, which disclosed ownership of 2.83 million shares as of December 31. Similar to most biotech stocks, Incyte’s shares have tumbled by 32% since the beginning of the year. After the company had posted earnings and revenue above estimates, analysts at Barclays reiterated their ‘Overweight’ rating and an $85 price target, while analysts at Brean Capital reiterated their ‘Buy’ rating and set a $92 price target. Shares are currently trading below $74.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.