10 Pharmaceutical Stocks to Buy Based on Billionaire Ken Griffin’s Portfolio

Published December 10, 2021 at 11:01 am EST Updated August 19, 2026 at 5:45 am EDT

In this article, we discuss the top 10 pharmaceutical stocks to buy based on billionaire Ken Griffin’s portfolio.

The pharmaceutical industry was projected to grow to $1250.24 billion in 2021 from $1228.45 billion in 2020, at a CAGR of 1.8%. As the COVID-19 pandemic ravaged the world, the big pharmaceutical companies rallied together to create vaccines, pills, and equipment. Companies like Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), Moderna, Inc. (NASDAQ:MRNA), and AstraZeneca PLC (NASDAQ:AZN) rose to the challenge and created COVID-19 vaccines in record time.

In 2020, due to the nationwide lockdowns, essential visits to the doctors were also banned, and this resulted in a 21% decline in patient visits. Visits dropped significantly for oncology, gastroenterology, and dermatology checkups. However, the use of telehealth for primary care increased to 35 million visits, peaking at 18% in April 2020.

Ken Griffin is an American entrepreneur, investor, and billionaire hedge fund manager. He is the founder, CEO, and CIO of Citadel Investment Group, which is a multinational hedge fund where Griffin owns 85% of the securities. 11.73% of billionaire Ken Griffin’s Q3 portfolio consists of healthcare stocks, and the rest of the portfolio is concentrated in the information technology, industrials, finance, consumer discretionary, and communications stocks.

The most notable healthcare stocks in Ken Griffin’s Citadel Investment Group’s Q3 portfolio include Pfizer Inc., McKesson Corporation (NYSE:MCK), Merck & Co., Inc. (NYSE:MRK), and Teladoc Health, Inc. (NYSE:TDOC), among others discussed in detail below.

Ken Griffin of Citadel Investment Group

Our Methodology

We used Ken Griffin’s portfolio for the third quarter to select his top 10 pharmaceutical stocks, ranking the companies according to the billionaire’s stake value in each holding.

We have also mentioned the Q3 earnings, analyst ratings, and the hedge fund sentiment around each stock for additional context on every company.

Pharmaceutical Stocks to Buy Based on Billionaire Ken Griffin’s Portfolio

10. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)

Citadel Investment Group’s Stake Value: $133,765,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.02%

Number of Hedge Fund Holders: 24

Billionaire Ken Griffin holds 1.48 million shares in Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) as of September 2021, worth $133.76 million, representing 0.02% of his total Q3 investments. Ultragenyx Pharmaceutical Inc. is a California-based biopharmaceutical company that is engaged in extensive R&D for medical products and treatments concerning extremely rare genetic diseases.

Ultragenyx Pharmaceutical Inc., on November 2, announced earnings for the third quarter. EPS in the period came in at -$1.45, missing estimates by -$0.36. The Q3 revenue equaled $81.65 million, beating estimates by $103,090.

On November 3, Citi analyst Yigal Nochomovitz stated that Ultragenyx Pharmaceutical Inc. is “trading at a significant discount to fair value”, with several emerging catalysts that will help the faltering stock. The analyst kept a Buy rating and a $150 price target on Ultragenyx Pharmaceutical Inc. shares.

Alkeon Capital Management is the largest Ultragenyx Pharmaceutical Inc. stakeholder from the third quarter, holding 2.3 million shares valued at $208.17 million. Overall, 24 hedge funds were bullish on Ultragenyx Pharmaceutical Inc. in Q3, with total stakes amounting to $638.6 million.

In addition to Pfizer Inc., McKesson Corporation, Merck & Co., Inc., and Teladoc Health, Inc., Ultragenyx Pharmaceutical Inc. is a notable pharmaceutical stock from billionaire Ken Griffin’s Q3 portfolio.

9. McKesson Corporation (NYSE:MCK)

Citadel Investment Group’s Stake Value: $137,805,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.02%

Number of Hedge Fund Holders: 51

McKesson Corporation is a Texas-based pharmaceutical company specializing in health information technology, medical supplies, and care management equipment. Ken Griffin, via Citadel Investment Group, owns 691,169 shares of McKesson Corporation, valued at $137.80 million, representing 0.02% of the hedge fund’s total investments.

Cowen analyst Charles Ryhee on December 6 raised the price target on McKesson Corporation to $300 from $268 and kept an Outperform rating on the shares, citing underlying growth across main business segments, further upside from vaccine distribution, and demand for boosters and pediatric shots accelerated by the COVID-19 Omicron variant.

On November 1, McKesson Corporation announced earnings for Q3, posting an EPS of $6.15, beating estimates by $1.49. The quarterly revenue equaled $66.58 billion, gaining 9.49% year-over-year, outperforming estimates by $3.36 billion.

Pzena Investment Management holds a leading stake in McKesson Corporation in the third quarter, valued at almost $594 million. Overall, 51 hedge funds in the Q3 database of Insider Monkey reported owning stakes in McKesson Corporation, with total stakes worth $2.27 billion.

Here is what Broyhill Asset Management has to say about McKesson Corporation in its Q2 2021 investor letter:

“Analysts continued ratcheting up full-year earnings estimates for McKesson (MCK) driving the stock steadily higher. Despite strong year-to-date gains, shares of the company are trading at lower valuations today than before the pandemic as earnings estimates have outpaced their rising stock prices… The story is similar at McKesson where vaccine distribution should continue to provide upside to consensus estimates. Although investors have been hesitant to give the company full credit for today’s “temporary” profits, we think these “temporary” COVID-tailwinds may turn out to be not so temporary. If we are wrong, we believe the downside is limited given recent activist involvement and management’s decision to pursue a strategic review to capture the full value of the company’s drug development business.”

8. Teladoc Health, Inc. (NYSE:TDOC)

Citadel Investment Group’s Stake Value: $150,260,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.03%

Number of Hedge Fund Holders: 40

Teladoc Health, Inc., a virtual healthcare company offering telemedicine services, medical opinions, AI and analytics, and telehealth devices, is one of the top pharmaceutical stocks to buy based on billionaire Ken Griffin’s portfolio. Griffin holds a $150.26 million position in Teladoc Health, Inc. as of Q3 2021, increasing his stake in the company by 46%. The stock accounts for 0.03% of the total Q3 portfolio of Citadel Investment Group.

Teladoc Health, Inc. reported earnings for the third quarter on October 27. EPS for the period totaled -$0.50, beating estimates by $0.12. The $521.66 million revenue jumped 80.26% from the prior year quarter, outperforming estimates by $4.87 million.

Baird analyst Vikram Kesavabhotla on December 2 lowered the price target on Teladoc Health, Inc. to $110 from $125 and kept a Neutral rating on the shares, stating that he sees an attractive near-term opportunity heading into Q4 results based on the potential for positive execution during the Omicron headwinds.

Cathie Wood’s ARK Investment Management is the leading Teladoc Health, Inc. stakeholder from the third quarter, holding 16.45 million shares worth over $2 billion. Overall, the Q3 database of 867 elite funds tracked by Insider Monkey reported that 40 hedge funds were bullish on Teladoc Health, Inc., down from 43 funds in the prior quarter.

Here is what Luca Capital has to say about Teladoc Health, Inc. in its Q3 2021 investor letter:

“As bullish as we are on the future of telemedicine though, we acquiesce that it can be difficult to build a durable moat. Although telemedicine is very scalable and an easy sell (everyone is a potential customer), the service itself is a commodity with little pricing power and low switching costs. However, scale is a significant advantage as a larger network of providers confers lower connection times and wider coverage. In addition, different areas of the country have varying access to care at any given time, but since regulations now allow providers to see patients across all states, we can better match doctors with patients under a national network, similar to “load balancing” in computing. Since Teladoc is international too, there also exists an opportunity to see patients across international borders. These are just a handful of reasons why we do not believe off-the-shelf consumer products like Zoom or Twilio will eventually replace the core telemedicine providers. They’re not integrated, not on-demand, limited to local physician supply, not accessible at the point-of-care via carts or other hospital equipment, and there’s nothing like Livongo to give the providers a continuous picture of patient health. Teladoc also allows white labelling, which enables health systems to take advantage of Teladoc’s additional provider supply while retaining the brand their patients have come to know and trust. However, while this incentivizes health systems to go with specialized platforms like Teladoc or Amwell, it’s making it more difficult for end-consumers to differentiate the major telemedicine providers at the product-level.”

7. HCA Healthcare, Inc. (NYSE:HCA)

Citadel Investment Group’s Stake Value: $174,007,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.03%

Number of Hedge Fund Holders: 72

HCA Healthcare, Inc. (NYSE:HCA) is a new arrival in Citadel’s portfolio. Griffin, via Citadel Investment Group, holds 716,903 shares in HCA Healthcare, Inc., worth $174 million, representing 0.03% of the fund’s total investments. HCA Healthcare, Inc. is a for-profit healthcare company that has been providing medical care to patients since its inception in 1968.

HCA Healthcare, Inc., on October 22, announced earnings for Q3. EPS in the quarter equaled $4.57, exceeding estimates by $0.56. The $15.28 billion quarterly revenue saw an increase of 14.76% year-over-year, beating estimates by $773.29 million.

Credit Suisse analyst A.J. Rice on October 25 raised the price target on HCA Healthcare, Inc. to $298 from $267 following the Q3 results. The analyst kept an Outperform rating on the shares.

Harris Associates holds a leading position in HCA Healthcare, Inc. in the third quarter, owning almost 8 million shares of the company worth $1.93 billion. Overall, 72 hedge funds monitored by Insider Monkey reported owning stakes in HCA Healthcare, Inc. in Q3, amounting to $3.30 billion.

Here is what First Eagle Investment Management has to say about HCA Healthcare, Inc. in its Q3 2021 investor letter:

“HCA Healthcare owns and operates 185 hospitals and approximately 2,000 sites of care in the US and UK. Admissions to its facilities, depressed during the worst of the Covid-19 outbreak in 2020, have begun to rebound. HCA reported a nearly 20% year-over-year increase in admissions during the second quarter and a 14% increase in revenue, and forecast that volume would continue to improve throughout the year. We maintain our positive opinion of the company’s management team, believing them to be effective stewards of both the balance sheet and HCA’s business operations.”

6. Laboratory Corporation of America Holdings (NYSE:LH)

Citadel Investment Group’s Stake Value: $176,880,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.03%

Number of Hedge Fund Holders: 58

Headquartered in North Carolina, Laboratory Corporation of America Holdings (NYSE:LH) operates a network of 36 major laboratories in the US, and manages the biggest clinical laboratory network in the world. Laboratory Corporation of America Holdings is one of the best pharmaceutical stocks to buy based on Ken Griffin’s Q3 portfolio, with the billionaire increasing his stake in the company by 21%, holding 628,479 shares worth $176.88 million.

Of the 58 hedge funds that were bullish on Laboratory Corporation of America Holdings in the third quarter, Gabriel Plotkin’s Melvin Capital Management is the largest stakeholder of the company, owning a $534.73 million position in the company.

Laboratory Corporation of America Holdings announced Q3 earnings on October 28. EPS in the third quarter amounted to $6.82, outperforming estimates by $1.90. The $4.06 billion revenue gained 4.21% year-over-year, exceeding estimates by $427.23 million.

On October 19, Citi analyst Ralph Giacobbe opened a “Positive Catalyst Watch” Laboratory Corporation of America Holdings ahead of the Q3 earnings reports, stating that continued strong cash flow and capital deployment “should support shares and allow the stock to retest highs.”

In addition to Pfizer Inc., McKesson Corporation, Merck & Co., Inc., and Teladoc Health, Inc., Laboratory Corporation of America Holdings is a notable pharmaceutical stock from billionaire Ken Griffin’s Q3 portfolio.

Here is what Weitz Investment Management Hickory Fund has to say about Laboratory Corporation of America Holdings in its Q3 2021 investor letter:

“Labcorp has also been a year-to-date contributor as the company’s traditional lab business continues to recover and as it becomes clear that COVID-related demand will remain elevated for an extended period.”

5. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)

Citadel Investment Group’s Stake Value: $198,174,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 60

Headquartered in Dublin, Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is a global biotechnology company that is engaged in the research and development of medicines that treat rare and rheumatic diseases. Ken Griffin, in Q3 2021, increased his position in Horizon Therapeutics Public Limited Company by 5%, holding 1.80 million shares of the company worth $198.1 million, representing 0.04% of the billionaire’s Q3 securities.

Horizon Therapeutics Public Limited Company on November 3 announced earnings for the third quarter. EPS in the period totaled $1.75, exceeding estimates by $0.21. The quarterly revenue increased almost 63% year-over-year, coming in at $1.04 billion, beating estimates by $57.5 million.

On November 18, Goldman Sachs analyst Madhu Kumar upgraded Horizon Therapeutics Public Limited Company to Buy from Neutral with a $168 price target, observing that the company’s top medical assets are major value and revenue drivers.

Kurt Von Emster’s VenBio Select Advisor is the leading stakeholder of Horizon Therapeutics Public Limited Company, with 9 million shares worth $985.86 million. Overall, 60 hedge funds in the database of Insider Monkey were long Horizon Therapeutics Public Limited Company in the third quarter, with total stakes amounting to $4.57 million.

Here is what Carillon Tower Advisers has to say about Horizon Therapeutics Public Limited Company in their Q1 2021 investor letter:

“Horizon Therapeutics is a biopharmaceutical company whose primary focus is research, development, and marketing of late-stage pharmaceutical products. After experiencing some unfortunate manufacturing hiccups in the later stages of 2020 for its key product Tepezza, which is used in the treatment of thyroid eye disease, the company recently received positive news that should relieve their supply issues going forward. With manufacturing of Tepezza back online after being forced to halt due to Operation Warp Speed’s COVID-19 vaccine production orders, Horizon expects patient treatments to resume in mid-April.”

4. Boston Scientific Corporation (NYSE:BSX)

Citadel Investment Group’s Stake Value: $205,400,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 47

Boston Scientific Corporation (NYSE:BSX) manufactures medical devices that enable treatments including interventional radiology, interventional cardiology, neurovascular intervention, cardiac surgery, vascular surgery, and endoscopy, among others. Ken Griffin holds a $205.4 million stake in Boston Scientific Corporation, reducing his position in the company by 14% in the third quarter.

On October 27, Piper Sandler analyst Matt O’Brien reiterated an Overweight rating and a price target of $51 on the Boston Scientific Corporation shares.

Thomas Steyer’s Farallon Capital is the largest stakeholder of Boston Scientific Corporation, with 14 million shares valued at $607.5 million. Overall, 47 hedge funds in the Q3 database of Insider Monkey were long Boston Scientific Corporation, down from 51 funds in the prior quarter.

Here is what Artisan Partners has to say about Boston Scientific Corporation in its Q2 2021 investor letter:

“Among our top contributors (includes) Boston Scientific. Shares of Boston Scientific were volatile throughout most of 2020 as the pandemic drove significant drops in elective medical procedures, though our longer-term constructive view and belief elective medical procedures would bounce back post pandemic prompted us to add to our position. We have been rewarded with shares rebounding this year alongside a recovery in elective medical procedures. Longer-term, we believe the company’s investments in higher growth categories will drive revenue growth to the higher end of its peer group with rising margins.”

3. Seagen Inc. (NASDAQ:SGEN)

Citadel Investment Group’s Stake Value: $210,015,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 40

Seagen Inc. (NASDAQ:SGEN), a Washington-based biotech company specializing in antibody-based therapies for treating cancer, is one of the best pharmaceutical stocks to buy based on billionaire Ken Griffin’s portfolio. Griffin, via Citadel Investment Group, owns a $210 million position in Seagen Inc. in the third quarter, which represents 0.04% of the hedge fund’s total 13F portfolio.

At the end of Q3 2021, 40 hedge funds in the database of Insider Monkey’s elite funds reported owning stakes in Seagen Inc., amounting to $9.47 billion. This is an increase compared to 37 funds being bullish on Seagen Inc. in the preceding quarter, holding total stakes worth $8.70 billion.

On October 28, Seagen Inc. announced its Q3 results, posting an EPS of -$1.61, missing estimates by -$1.04. The quarterly revenue totaled $424.06 million, down 60.06% as compared to the preceding year quarter, but exceeding estimates by $38.91 million.

Wolfe Research analyst Andrew Galler on November 8 initiated coverage of Seagen Inc. with a Peer Perform rating and a $195 price target.

Here is what Carillon Tower Advisers has to say about Seagen Inc. in their Q4 2020 investor letter:

“Seagen is a biotechnology company engaged in the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer. The stock slumped a bit in the quarter after the firm announced it was lowering guidance for its drug Adcetris, which is an antibody medication used to treat lymphoma. We remain optimistic on the stock, primarily due to the company’s appealing pipeline of new products as well as the continued growth of Padcev (for metastatic urothelial cancer) and Tucatinib (for breast cancer).”

2. Pfizer Inc. (NYSE:PFE)

Citadel Investment Group’s Stake Value: $228,722,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 74

Citadel Investment Group owns 5.31 million Pfizer Inc. shares as of Q3 2021, increasing its stake in the company by 650% in the third quarter, making Pfizer Inc. one of the best pharmaceutical stocks to buy according to billionaire Ken Griffin. Pfizer Inc. is an American pharmaceutical and biotechnology company that focuses on internal medicine, immunology, inflammation, oncology, rare diseases, anti infectives, and vaccines.

The company scored headlines when Pfizer Inc. vaccine for the COVID-19 was approved as one of the best vaccines by the World Health Organization, with Pfizer Inc. stating on December 8 that three doses of the current vaccine will offer protection against the COVID-19 Omicron variant.

Pfizer Inc. announced Q3 earnings on November 2. EPS in the quarter came in at $1.34, beating estimates by $0.25. The $24.09 billion revenue also outperformed estimates by $1.28 billion, jumping 98.62% year-over-year.

Ric Dillon’s Diamond Hill Capital is the biggest Pfizer Inc. stakeholder from Q3, with 10.64 million shares worth $457.89 million. Overall, 74 hedge funds in the database of Insider Monkey were long Pfizer Inc. in the third quarter, up from 67 funds in the previous quarter.

Here is what ClearBridge Investments has to say about Pfizer Inc. in its Q1 2021 investor letter:

“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”

1. Merck & Co., Inc. (NYSE:MRK)

Citadel Investment Group’s Stake Value: $231,980,000

Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 77

Merck & Co., Inc. is the top pharmaceutical stock based on billionaire Ken Griffin’s Q3 portfolio, with his hedge fund holding over 3 million shares of Merck & Co., Inc. in the third quarter, worth $231.98 million, accounting for 0.04% of the fund’s total Q3 portfolio. Merck & Co., Inc. is an American pharmaceutical company working to prevent and treat diseases that affect people and animals, including cancer, infectious diseases like HIV and Ebola, and emerging animal diseases.

Merck & Co., Inc. reported Q3 results on October 28. EPS for the period amounted to $1.75, beating estimates by $0.20. The quarterly revenue equaled $13.15 billion, up 4.80% from the preceding year quarter, exceeding estimates by $833.53 million.

On December 7, Guggenheim analyst Seamus Fernandez downgraded Merck & Co., Inc. to Neutral from Buy and removed his prior $98 price target on the shares, observing low pipeline visibility.

Fisher Asset Management is the biggest Merck & Co., Inc. stakeholder from Q3, with 10.63 million shares worth $798.66 million. Overall, 77 hedge funds reported owning stakes worth $4.55 billion in Merck & Co., Inc. in the third quarter, down from 79 funds in the preceding quarter, holding stakes valued at $5.29 billion.

Here is what Artisan Partners has to say about Merck & Co., Inc. in its Q1 2021 investor letter:

“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”

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