Onyx Pharmaceuticals, Inc. (ONXX), Cyberonics, Inc. (CYBX) Among Elite Investor’s Top Five Positions

The percentage of sales dedicated to sales dropped 1% to 11%.  The stock is also cheap compared to its competitors in this sector such as Novo Nordisk A/S (ADR) (NYSE:NVO) and Roche Holding Ltd. (ADR) (OTC:RHHBY).  Since adding UTHR to the portfolio during the 2Q of 2011, Edwards has increased his position in the company by 140%.  Judging by the performance of the stock – it’s up 14% on the year – it appears to have been a smart bet.

Last is Questcor Pharmaceuticals Inc (NASDAQ:QCOR) at 2.2 million shares.  The biopharmaceutical company develops drugs for the treatment of autoimmune and inflammatory disorders such as multiple sclerosis.  Fourth quarter earnings were very strong for QCOR as revenue jumped 133% and net income was up a staggering 148%, largely on the sale of Acthar, used to treat MS.  Unfortunately, the financial strength of the company has been undermined recently by restrictions on  Actharns.  Blue Cross/Blue Shield of Michigan as well as Aetna restricts reimbursement of the treatment if it is used for anything other than infantile-spasms.  And analysts worry that other insurers are likely to follow suit, which could ultimately be the death knell for Acthar.  Since the start of the year, QCOR has barely moved off the $25.50-$36.54 range.

William Edwards seems to have found a niche in the healthcare sector with biopharmaceutical and biotech companies.  This limited strategy can often be less profitable than allowing for other sectors with greater growth potential.  Judging by the lackluster performance of some of these stocks, branching out might not only provide diversity, but profitability as well.

Disclosure: none