Below we listed the 5 best large-cap biotech stocks to buy now according to hedge funds. For our detailed discussion as well as a more comprehensive list please see 12 Best Large-cap Biotech Stocks To Buy Now.
5. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
No of HFs: 55
Total Value of HF Holdings: $3.4 Billion
Coming in fifth in our list of best large biotech stocks to buy now is Vertex Pharmaceuticals Incorporated, they are a biopharmaceutical company that is known as one of the first firms to use an explicit strategy of rational drug design. They are focused on creating medicines to cure diseases and improve people’s lives. The company has multiple approved medicines that treat the underlying cause of cystic fibrosis. During the third quarter of 2020, the company reported product revenue of $1.54 billion, a 62% increase compared to the same quarter of 2019.
The top hedge fund holder of this stock is Jim Simon’s Renaissance Technologies which had $1.416 billion invested in the stock at the end of September.
4. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)
No of HFs: 58
Total Value of HF Holdings: $3.7 Billion
Alexion Pharmaceuticals, Inc. is a global biopharmaceuticals company that focuses on developing life-changing therapies for people living with rare disorders. To date, the company has five innovative medicines approved for the treatment of seven rare diseases, ANDEXXA, KANUMA, SOLIRIS, STRENSIQ, and ULTOMIRIS. During the third quarter of 2020, the company reported total revenue of $1,588.7 million, a 26 percent increase compared to the same period in 2019.
In an article, we mentioned Miller Value Partners’ Hedge Fund Investor Letter where he highlighted ALXN,
“Alexion Pharmaceuticals (ALXN) fell 25.2% over the quarter after reporting a top-line beat with revenue of $1,203M versus the Street at $1,174M and EPS of $2.64 ahead of consensus of $2.34. The company raised full year guidance with revenue of $4,750-4,800M from $4,675-4,750m and EPS of $9.65-9.85 from $9.25. Later in the quarter, the US Patent and Trademark Office said it would review three patents on its top-selling Soliris drug following a challenge filed by Amgen. The European Patent Office decided to refrain from granting Alexion two Soliris patents which would have provided patent protection through 2027. The company also announced the acquisition of an exclusive license to develop and commercialize BBIO’s/EIDX’s TTR stabilizer AG10 in Japan for $25M upfront, $25M equity investment along with milestones and royalties. Alexion announced the planned succession of CFO Paul Clancy with Dr. Aradhana Sarin M.D., who is currently Chief Strategy Officer, beginning in the fourth quarter.”
3. Biogen, Inc. (NASDAQ:BIIB)
No of HFs: 59
Total Value of HF Holdings: $3.2 Billion
Biogen, Inc. is a multinational biotechnology company that focuses on the development, production, and marketing of therapies focusing on neurology, oncology, and immunology. During the third quarter of 2020, the company reported total revenue of $3,376 million.
Should value investors buy Biogen Stocks? In an article, we mentioned Distillate Capital’s investor letter and highlighted stocks including BIIB where he said:
“The biggest additions to the portfolio in the rebalance were Biogen and Philip Morris, each increasing around 30 basis points as their relative valuations improved over the quarter.”
2. Gilead Sciences, Inc. (NASDAQ:GILD)
No of HFs: 61
Total Value of HF Holdings: $1.9 Billion
Gilead Sciences, Inc. is a research-based biopharmaceutical company that focuses on the development of therapeutics to advance the care of patients that suffer from HIV, AIDS, liver disease, and serious cardiovascular and respiratory conditions. During the third quarter of 2020, the company reported a revenue of $6.6 billion, up 17% compared to $5.6 billion during the same quarter of 2019.
Why Gilead Sciences, Inc stock is a compelling investment case? In an article, Tao Value highlighted a few stocks where GILD was one of them,
“On the detracting side, our largest detractor is Gilead Sciences (ticker: GILD), which dragged 104 bps. Gilead reported a lackluster Q2, falling short of earning estimate by relatively large margin. It however it raised its full year revenue and earning guidance, possibly due to incremental Remdesivir revenue in 2nd half year. Gilead also announced a big acquisition of Immunomedics for $21 billion. Through this acquisition, Gilead will add Immunomedics’ crown asset Trodelvy to its oncology pipeline and expect it could be significantly accretive to earnings since 2023. The share price decline might be due to COVID19 themed traders seek exit after a good run. I didn’t see changes to our original thesis.”
1. Horizon Therapeutics Public Limited (NASDAQ:HZNP)
No of HFs: 61
Total Value of HF Holdings: $4 Billion
The top best large biotech stock to buy now is Horizon Therapeutics Public Limited. HZNP is a biopharmaceutical company that focuses on the researching, developing, and marketing of medicines that address critical needs for people impacted by rare and rheumatic diseases. During the third quarter of 2020, the company reported net sales of $636.4 million, an increase of 90 percent compared to the third quarter of 2019.
The top hedge fund holder of this stock is Jim Simon’s Renaissance Technologies which had over $682 million invested in the stock at the end of September.
Please also see 10 Best Chinese Stocks to Buy Now and 10 Best Growth Stocks to Buy According to Ray Dalio.
