These Are Apex Capital Management’s Top Biotech Stock Picks

Another biotech stock Apex Capital Management is optimistic about is Medivation Inc (NASDAQ:MDVN), a developer of therapy solutions for diseases with limited treatment options. Apex reported a 3% increase to its holding of the stock, to 1.26 million shares worth $53.6 million. Valued at $7.68 billion, Medivation Inc (NASDAQ:MDVN) is trading at a P/E ratio of 28.xx, about seven-times lower than the industry average, currently at 201.90-times. Although the stock staged a rally during the first three months of 2015, it peaked at $70.79 per share at the end of March and has gone downhill since then, currently down by approximately 8.8% this year overall. The company is set to release its third quarter financial results on November 5, with analysts eyeing $237 million in revenues and earnings of $0.32 per share.

Apex’s holding of Enanta Pharmaceuticals Inc (NASDAQ:ENTA) was also boosted during the third quarter and is now at 1.22 million shares valued at more than $44.1 million. The stock ended yesterday’s trading session at $24.69, down by 51% so far this year. Shares have tumbled following a recent FDA warning that the company’s Viekira Pak may cause serious injuries to patients with advanced liver disease. Analysts believe the selloff that ensued was an overreaction, hinting that this is could be a good opportunity to buy the stock on the dip. Liisa A. Bayko of JMP Securities upgraded the stock to ‘Outperform’ from ‘Market Perform’ recently, and assigned it a price target of $32 per share. Bayko claims sales of Enanta Pharmaceuticals Inc (NASDAQ:ENTA) will not be severely hit by the FDA ruling, as part of the revenues is already secured by exclusive contracts.

With ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS) making lower lows throughout the third quarter, the management of Apex decided to buy some more shares at better prices, boosting their holding by 4%. The fund reported ownership of roughly 1.02 million shares worth some $41.2 million as of the end of September. Down by 18.8% so far this year, the stock ended yesterday’s trading session at $51.90 per share, giving the company a market cap of roughly $6.4 billion. Whereas ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS) posted a profit for the second quarter, analysts have gloomier expectations for the third: revenues of $52.9 million and a loss of $0.31 per share are expected. The company is set to post those results on November 9.

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