In this article, we will discuss the 5 best biotech stocks to buy according to Joseph Edelman’s Perceptive Advisors based on Q2 holdings of the fund. If you want to read our detailed analysis of Edelman’s history, investment philosophy, and hedge fund performance, go directly to the 10 Best Biotech Stocks to Buy According to Joseph Edelman’s Perceptive Advisors.
5. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Edelman’s Stake Value: $285,173,000
Percentage of Joseph Edelman’s 13F Portfolio: 3.7%
Number of Hedge Fund Holders: 30
Founded in 2007, Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) is a biotechnology company advancing T cell-based immunotherapies for patients with blood cancer and tumors. The company is ranked fifth on our list of the 10 best biotech stocks to buy according to Joseph Edelman’s Perceptive Advisors.
13F filings show that Perceptive Advisors owned 10.95 million shares in Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) at the end of the second quarter of 2021, worth over $285 million. Out of the hedge funds being tracked by Insider Monkey, ARK Investment Management is the leading investor in Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) with a stake worth $480.1 million, representing 0.89% of the portfolio.
On June 10, JMP Securities upgraded Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) to Outperform from Market Perform with a price target of $32.
In its Q2 2021 investor letter, investment management firm Artisan Partners shared its views on Iovance Biotherapeutics, Inc. (NASDAQ: IOVA). Here’s what the fund said:
“Iovance is the leader in tumor infiltrating lymphocyte (TIL) development and manufacturing. A TIL is a type of immune cell capable of recognizing and killing cancer cells. In cancer therapy, tumor-infiltrating lymphocytes are removed from a patient’s tumor, grown in large numbers in a laboratory and then given back to the patient to help the immune system fight the disease. Iovance’s manufacturing process is efficient, reliable and scalable which enables commercialization of this therapy.
Iovance’s first commercial drug to treat metastatic melanoma, Lifileucel, is experiencing difficulty gaining FDA approval. Iovance is working with the FDA to develop new methods to meet the agency’s manufacturing requirements. Unfortunately, the company’s CEO resigned in mid-May, prompting some analysts on the Street to question how far off the company and FDA are in reaching alignment. The company is expected to meet with the FDA later this year, though the FDA has been strained by the pandemic and an approval for Lifileucel has likely been pushed into 2022. Given the strong data around Lifileucel’s efficacy, we believe the drug is de-risked, and we are remaining patient.”
4. Travere Therapeutics, Inc. (NASDAQ:TVTX)
Edelman’s Stake Value: $384,422,000
Percentage of Joseph Edelman’s 13F Portfolio: 4.98%
Number of Hedge Fund Holders: 25
Travere Therapeutics, Inc. (NASDAQ: TVTX) is a California-based company engaged in the discovery and production of medical treatments for rare diseases. The company has secured the fourth rank on our list of the 10 best biotech stocks to buy according to Joseph Edelman’s Perceptive Advisors.
On September 17, wealth management firm Canaccord lowered the price target on Travere Therapeutics, Inc. (NASDAQ: TVTX) from $45 to $42 and maintained a Buy rating.
25 hedge funds out of the 873 tracked by Insider Monkey held stakes in Travere Therapeutics, Inc. (NASDAQ: TVTX) at the end of the second quarter of 2021, down from 27 in the preceding quarter.
3. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)
Edelman’s Stake Value: $399,681,000
Percentage of Joseph Edelman’s 13F Portfolio: 5.18%
Number of Hedge Fund Holders: 18
SpringWorks Therapeutics, Inc. (NASDAQ: SWTX) is placed third on our list of the 10 best biotech stocks to buy according to Joseph Edelman’s Perceptive Advisors. Headquartered in Connecticut, SpringWorks is working towards developing and commercializing life-saving medicines for people with chronic illnesses.
As per the latest data, Perceptive Advisors owned 4.84 million shares in SpringWorks Therapeutics, Inc. (NASDAQ: SWTX) at the end of the second quarter of 2021, worth $399.6 million.
As of the second quarter of 2021, the number of hedge fund positions in SpringWorks Therapeutics, Inc (NASDAQ: SWTX) declined to 18 in comparison to 22 positions in the preceding quarter.
2. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Edelman’s Stake Value: $472,862,000
Percentage of Joseph Edelman’s 13F Portfolio: 6.13%
Number of Hedge Fund Holders: 27
BridgeBio Pharma, Inc. (NASDAQ: BBIO) is ranked second on our list of the 10 best biotech stocks to buy according to Joseph Edelman’s Perceptive Advisors. Headquartered in California, the company engages in the development and production of medicines for genetic diseases.
According to the latest filings, Perceptive Advisors owned 7.75 million shares in BridgeBio Pharma, Inc (NASDAQ: BBIO) at the end of the second quarter of 2021, worth $472.8 million.
On September 10, Bank of America upgraded BridgeBio Pharma, Inc (NASDAQ: BBIO) from Neutral to Buy and kept the price target of $75, citing a positive outlook on the company’s upcoming trials.
At the end of the second quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $2.79 billion in BridgeBio Pharma, Inc. (NASDAQ: BBIO), up from 26 hedge funds in the previous quarter. Moreover, the company beat the analysts’ EPS estimate of -$0.97 by $0.31 for the second quarter of 2021.
In its Q2 2021 investor letter, Baron Opportunity Fund mentioned BridgeBio Pharma, Inc. (NASDAQ: BBIO). Here’s what the fund said:
“BridgeBio Pharma, Inc. is a biotechnology company developing drugs that address a host of genetic disorders. Shares fell in the quarter given concerns around increasing competition. While we expect positive results from BridgeBio’s Phase 3 trial for its lead program for TTR amyloidosis, a disease in which toxic proteins build up in the heart and nerves, encouraging updates from Alnylam’s competing drug, Vitrusiran, and more recently, Intellia’s gene editing platform, pressured the stock. We exited our position.”
1. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
Edelman’s Stake Value: $514,618,000
Percentage of Joseph Edelman’s 13F Portfolio: 6.67%
Number of Hedge Fund Holders: 55
Mirati Therapeutics, Inc. is a California-based clinical-stage biotechnology company that is working to produce breakthrough treatments for people diagnosed with cancer. Founded in 1995, Mirati Therapeutics, Inc. (NASDAQ: MRTX) actively seeks collaboration opportunities to delve deeper into the science behind tumor growth and development. 13F filings reveal that Perceptive Advisors owned around 3.19 million shares in Mirati Therapeutics, Inc. (NASDAQ: MRTX) at the end of the second quarter of 2021, worth over $514.6 million.
On September 22, investment advisory Stifel initiated a Buy rating on Mirati Therapeutics, Inc. (NASDAQ: MRTX) with a $202 price target, noting that the recent developments in the company’s clinical program Adagrasib put forward an expansion opportunity.
As of the second quarter of 2021, 55 hedge funds out of the 873 tracked by Insider Monkey held stakes worth $2.79 billion in Mirati Therapeutics, Inc. (NASDAQ: MRTX), in comparison to 57 funds in the preceding quarter.
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