5 Best Pharma and Biotech Stocks to Buy According to Jim Simons’ Euclidean Capital

In this article, we discuss the 5 best pharma and biotech stocks to buy according to Jim Simons’ Euclidean Capital. If you want to read our detailed analysis of Simons’ history, investment philosophy and hedge fund performance, go directly to the 11 Best Pharma and Biotech Stocks to Buy According to Jim Simons’ Euclidean Capital. 

5. Denali Therapeutics Inc. (NASDAQ: DNLI) 

Simons’ Stake Value: $18,486,000
Percentage of Jim Simons’ 13F Portfolio: 6.18%
Number of Hedge Fund Holders: 26

Denali Therapeutics Inc. (NASDAQ: DNLI) is an American biopharmaceutical company. The company was incorporated in 2013 and is ranked fifth on the list of 10 best pharma and biotech stocks to buy according to Jim Simons’ Euclidean Capital. Denali Therapeutics currently has an $8.51 billion market capitalization. The company’s shares have gained a whopping 127.01% over the last 12 months.

On May 18, UBS analyst Esther Rajavelu initiated a coverage of Denali Therapeutics Inc. (NASDAQ: DNLI) with a “Buy” rating and price target of $70. On May 3, Denali Therapeutics announced positive results from early-stage studies of BIIB122/DNL151 in Parkinson’s disease. 

Euclidean Capital holds 323,749 shares in Denali Therapeutics Inc. (NASDAQ: DNLI), worth over $18 million, representing 6.18% of their portfolio. As of the end of the first quarter, there were 26 hedge funds in Insider Monkey’s database that held stakes in Denali Therapeutics, compared to 20 funds in the previous quarter. 

Baron Funds, in their first quarter 2021 investor letter, mentioned Denali Therapeutics Inc. (NASDAQ: DNLI). Here is what the fund said:

“Denali Therapeutics Inc. is a biotechnology company developing therapies for neurodegeneration, including both targeted drugs and delivery systems for crossing the blood/brain barrier. Shares fell in concert with the broader market rotation from growth to value that resulted in significant weakness in biotechnology stocks. From a fundamentals perspective, Denali reported incrementally positive updates from its Hunter Syndrome program in the quarter, although this development was more impactful in the prior quarter when initial data was released.”