In this article, we will take a look at some of the notable pharma stocks to buy according to Steven Boyd’s Armistice Capital.
Steven Boyd is the founder and Managing Partner of Armistice Capital, a hedge fund based in New York. Steven Boyd graduated with a B.S. in Economics as well as a B.A. in Political Science from The Wharton School of the University of Pennsylvania. He started his career as an Analyst at McKinsey & Company, followed by a stint as an Analyst at SAB Capital Management. Later, Steven worked as an Associate at York Capital, focusing primarily on investments in consumer and health care equities. Prior to forming Armistice Capital, Steven worked as a Senior Research Analyst at Senator Investment Group.
Armistice Capital is a global, long/short, value-oriented, and event-driven hedge fund primarily focused on healthcare and consumer sectors. The hedge fund predominantly invests in equities with rare opportunistic investments across the capital structure.
As of Q2 2022, the 13F portfolio of Steven Boyd’s Armistice Capital was valued at $5.7 billion. Some of the notable companies included in the portfolio were Illumina, Inc. (NASDAQ:ILMN), Medtronic plc (NYSE:MDT), Adobe Inc. (NASDAQ:ADBE), and Walmart Inc. (NYSE:WMT), among others.
Methodology
We picked the top 10 pharmaceutical stocks from Steven Boyd’s Armistice Capital 13F portfolio for the second quarter of 2022.
10 Best Pharmaceutical Stocks to Buy According to Steven Boyd’s Armistice Capital
10. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Armistice Capital’s Stake Value: $87,918,000
Percentage of Armistice Capital’s 13F Portfolio: 1.53%
Number of Hedge Fund Holders: 45
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a pharmaceutical company focused on creation of transformative medicines for people with serious and life-threatening diseases. It discovered and developed the first medicines to treat the underlying cause of cystic fibrosis, a rare, life-threatening genetic disease.
Armistice Capital holds 312,000 shares of Vertex Pharmaceuticals Incorporated, making up 1.53% of the hedge fund’s 13F portfolio. Armistice Capital’s stake in the company increased by 33% in Q2 2020, compared to the previous quarter.
Vertex Pharmaceuticals Incorporated released its quarterly results for Q2 2022 in August. Its net revenue increased by 22% y-o-y to $2.2 billion, while it reported a net income of $810 million. It reported a normalized EPS of $3.60, beating the consensus by $0.10.
On September 27, Vertex Pharmaceuticals Incorporated announced that it had concluded talks with FDA and will submit its biologics licensing application for exa-cel for potential treatment of sickle cell disease and transfusion-dependent beta thalassemia for rolling review beginning in November.
As of Q2 2022, 45 hedge funds out of the 895 hedge funds tracked by Insider Monkey were bullish on Vertex Pharmaceuticals Incorporated and held its shares valued at $2.3 billion. Jim Simons’ Renaissance Technologies was the largest shareholder holding 1.8 million shares valued at $496 million.
9. Bristol-Myers Squibb Company (NYSE:BMY)
Armistice Capital’s Stake Value: $89,012,000
Percentage of Armistice Capital’s 13F Portfolio: 1.55%
Number of Hedge Fund Holders: 69
Based in New Jersey, Bristol-Myers Squibb Company (NYSE:BMY) is a biotechnology company focused on the discovery, development, and delivery of innovative medicines for serious diseases across oncology, hematology, immunology, cardiovascular disease, and fibrosis.
Steven Boyd’s Armistice Capital owns 1,156,000 shares in Bristol-Myers Squibb Company, accounting for 1.55% of the hedge fund’s 13F portfolio. The hedge fund reduced its investment in Bristol-Myers Squibb Company by 18% in Q2 2022, compared to the previous quarter.
Bristol-Myers Squibb Company shares have fared significantly better than the broader United States equity indices. It is up 14% year to date.
According to the Insider Monkey data tracking 895 hedge funds, 69 hedge funds were long Bristol-Myers Squibb Company as of Q2 2022, holding shares with total value of $2.2 billion. Its largest shareholder was Two Sigma Advisors with ownership of 4.7 million shares valued at $363 million.
8. Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA)
Armistice Capital’s Stake Value: $97,849,000
Percentage of Armistice Capital’s 13F Portfolio: 1.70%
Number of Hedge Fund Holders: 18
Watertown, Massachusetts-based Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) is a clinical stage biotechnology company focused on the discovery and development of small molecule drugs for the treatment of viral infections and liver diseases.
Steven Boyd’s Armistice Capital owns 2,070,000 shares of Enanta Pharmaceuticals, Inc., accounting for 1.70% of its 13F portfolio. The hedge fund increased its stake by 85% in the company during Q2 2022, compared to the previous quarter.
The pipeline of Enanta Pharmaceuticals, Inc. includes clinical candidates currently in development for respiratory syncytial virus (RSV), COVID-19 and hepatitis B virus. It is also conducting research in human metapneumovirus.
On August 10, Oppenheimer analyst Jay Olson raised the price target on Enanta Pharmaceuticals, Inc. shares to $59 from $53 and maintained a ‘Perform’ rating on the shares.
As of Q2 2022, 18 of the 895 hedge funds tracked by Insider Monkey owned shares of Enanta Pharmaceuticals, Inc., valued at $263 million. Thomas Steyer’s Farallon Capital was its second largest shareholder after Armistice Capital, with ownership of 1.6 million shares valued at $73 million.
7. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Armistice Capital’s Stake Value: $111,132,000
Percentage of Armistice Capital’s 13F Portfolio: 1.93%
Number of Hedge Fund Holders: 44
Based in Tarrytown, New York, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a leading biotechnology company that invents, develops, and commercializes medicines with a focus on eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, pain, hematologic conditions, infectious diseases, and rare diseases.
Steven Boyd’s Armistice Capital owns 188,000 shares of Regeneron Pharmaceuticals, Inc., accounting for 1.93% of its 13F portfolio. The hedge fund doubled down on its investment in the pharmaceutical company and increased its stake by 124% in Q2 2022, as compared to the previous quarter.
On September 28, Regeneron Pharmaceuticals, Inc. announced that it had received FDA approval for Dupixent for the treatment of adult patients with prurigo nodularis, a chronic, debilitating skin disease. Dupixent is the first and only medicine specifically indicated to treat this disease.
Earlier on September 16, Canaccord analyst John Newman had raised the price target for Regeneron Pharmaceuticals, Inc. shares to $750 from $700 while maintaining a ‘Buy’ rating.
As of Q2 2022, Regeneron Pharmaceuticals, Inc. shares were held by 44 of the 895 hedge funds tracked by Insider Monkey, for a total value of $1.6 billion. Jim Simons’ Renaissance Technologies was the largest hedge fund shareholder, with ownership of 0.6 million shares valued at $345 million.
6. Travere Therapeutics, Inc. (NASDAQ:TVTX)
Armistice Capital’s Stake Value: $128,904,000
Percentage of Armistice Capital’s 13F Portfolio: 2.24%
Number of Hedge Fund Holders: 30
San Diego, California-based Travere Therapeutics, Inc. (NASDAQ:TVTX) is a biopharmaceutical company focused on developing therapies for rare diseases. Its product portfolio comprises four approved drugs: Chenodal, Cholbam, Thiola, and Thiola EC delayed-release tablets, while its R&D pipeline is led by sparsentan – a novel product candidate targeting rare kidney diseases.
Steven Boyd’s Armistice Capital owns 5,320,000 shares of Travere Therapeutics, Inc., accounting for 2.24% of its 13F portfolio. The hedge fund increased its stake by 8% in Q2 2022, as compared to the previous quarter.
In August, Travere Therapeutics, Inc. announced the EMA has accepted for review the Conditional Marketing Authorization application for sparsentan for the treatment of IgAN, a rare kidney disorder, with potential approval expected in the second half of 2023.
On August 15, Piper Sandler analyst Do Kim lowered the price target on Travere Therapeutics, Inc. shares to $39 from $41 while maintaining an ‘Overweight’ rating on the shares.
As of Q2 2022, 30 of the 895 hedge funds tracked by Insider Monkey were long Travere Therapeutics, Inc., holding shares worth $704 million.
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5. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Armistice Capital’s Stake Value: $129,064,000
Percentage of Armistice Capital’s 13F Portfolio: 2.25%
Number of Hedge Fund Holders: 39
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical company dedicated to discovering and developing treatments for neurological, neuroendocrine, and neuropsychiatric disorders. Its portfolio includes FDA-approved treatments for tardive dyskinesia, Parkinson’s disease, endometriosis, and uterine fibroids, as well as clinical programs for multiple therapies.
As of Q2 2022, Steven Boyd’s Armistice Capital holds 1,324,000 shares of Neurocrine Biosciences, Inc., accounting for 2.25% of the 13F portfolio of the hedge fund. The hedge fund increased its stake by 104% in Q2 2022, as compared to the previous quarter.
On September 26, Wells Fargo analyst Mohit Bansal initiated coverage of Neurocrine Biosciences, Inc. shares with a price target of $110 and an ‘Equal Weight’ rating on the shares.
As of Q2 2022, 39 of the 895 hedge funds tracked by Insider Monkey owned shares of Neurocrine Biosciences, Inc., valued at $1.3 billion. Deerfield Management is its largest shareholder with ownership of 2 million shares valued at $196 million.
4. PTC Therapeutics, Inc. (NASDAQ:PTCT)
Armistice Capital’s Stake Value: $132,038,000
Percentage of Armistice Capital’s 13F Portfolio: 2.30%
Number of Hedge Fund Holders: 22
PTC Therapeutics, Inc. (NASDAQ:PTCT) is a biopharmaceutical company focused on discovering, developing & commercializing medicine for patients with rare disease. Its portfolio of approved therapies is led by EMFLAZA, approved in the US for treatment of Duchenne muscular dystrophy, and EVRYSDI, designed to treat spinal muscular atrophy.
Armistice Capital owns 3,296,000 shares of PTC Therapeutics, Inc., accounting for 2.30% of its 13F portfolio. The hedge fund increased its stake by 9% in Q2 2022, as compared to the previous quarter.
As of Q2 2022, 22 of the 895 hedge funds tracked by Insider Monkey owned shares of PTC Therapeutics, Inc., valued at $323 million. Camber Capital Management was its second largest hedge fund shareholder after Armistice Capital, with ownership of 2.5 million shares valued at $98 million.
3. Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN)
Armistice Capital’s Stake Value: $136,271,000
Percentage of Armistice Capital’s 13F Portfolio: 2.37%
Number of Hedge Fund Holders: 19
Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) is a pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases. It markets several therapies for CNS diseases, including Qelbree for treatment of ADHD, Trokendi XR and Oxtellar XR for treatment of epilepsy, among others.
As of Q2 2022, Steven Boyd’s Armistice Capital holds 4,712,000 shares of Supernus Pharmaceuticals, Inc., accounting for 2.37% of the hedge fund’s 13F portfolio. The hedge fund increased its stake by 52% in Q2 2022, as compared to the previous quarter.
In April, Supernus Pharmaceuticals, Inc. had announced that it had received FDA approval for Qelbree for the treatment of ADHD in adult patients aged 18 and older, making it the first novel, nonstimulant option for adults with ADHD in the last 20 years.
On August 31, Piper Sandler analyst David Amsellem raised the price target on Supernus Pharmaceuticals, Inc. shares to $38 from $33 and maintained an ‘Overweight’ rating on the shares. The increase in price target stemmed from prescription growth of Qelbree in ADHD treatment in the latest quarter.
As of Q2 2022, 19 of the 895 hedge funds tracked by Insider Monkey held Supernus Pharmaceuticals, Inc. shares, valued at a combined total of $247 million. Armistice Capital is its largest shareholder.
2. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
Armistice Capital’s Stake Value: $137,482,000
Percentage of Armistice Capital’s 13F Portfolio: 2.39%
Number of Hedge Fund Holders: 40
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is a clinical-stage biotechnology company focused on discovery, design, and delivery of breakthrough therapies for cancer patients, including lung cancer, and a pipeline of novel therapeutics targeting the genetic and immunological drivers of cancer.
In September, Mirati Therapeutics, Inc. announced results from a multicohort Phase 1/2 study evaluating adagrasib in patients with advanced colorectal cancer harboring a KRASG12C mutation. The results demonstrated promising clinical efficacy and favorable tolerability.
On September 26, JPMorgan analyst Anupam Rama lowered the price target on Mirati Therapeutics, Inc. shares to $94 from $109 and maintained an ‘Overweight’ rating on the shares. The analyst sees “the updated KRYSTAL-7 results, expected in Q4, as having the potential to set adagrasib apart with a meaningful first-mover advantage and potential to drive 25%-40% upside in the shares.”
As of Q2 2022, 40 hedge funds owned shares of Mirati Therapeutics, Inc., valued at $1.2 billion. VenBio Select Advisor is its largest shareholder with ownership of 5.6 million shares valued at $373 million.
1. Incyte Corporation (NASDAQ:INCY)
Armistice Capital’s Stake Value: $151,940,000
Percentage of Armistice Capital’s 13F Portfolio: 2.65%
Number of Hedge Fund Holders: 29
Wilmington, Delaware-based Incyte Corporation (NASDAQ:INCY) is global biopharmaceutical company focused on the discovery, development, and commercialization of novel medicines across Oncology and Inflammation & Autoimmunity.
Steven Boyd’s Armistice Capital holds 2,000,000 shares of Incyte Corporation, accounting for 2.65% of its 13F portfolio, as of Q2 2022.
On August 26, Incyte Corporation announced that it had received FDA approval for Pemazyre for the treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms (MLNs) with FGFR1 rearrangement. MLNs are extremely rare and aggressive blood cancers.
As of Q2 2022, Incyte Corporation shares are held by 29 out of the 895 hedge funds tracked by Insider Monkey, with a total value of $4 billion. Baker Bros. Advisors was the largest hedge fund shareholder with ownership of 36.2 million shares valued at $2.7 billion.
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This article is originally published at Insider Monkey.
