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.”
4. Alector, Inc. (NASDAQ: ALEC)
Simons’ Stake Value: $19,755,000
Percentage of John Khoury’s 13F Portfolio: 6.6%
Number of Hedge Fund Holders: 15
Alector, Inc. (NASDAQ: ALEC) is a clinical-stage biopharmaceutical company that develops medicines to treat neurological diseases. It was founded in 2013 and ranks fourth on the list of 10 best pharma and biotech stocks to buy according to Jim Simons’ Euclidean Capital. Alector shares have gained about 39.65% over the last 12 months.
On July 7, Citi analyst Neena Bitritto-Garg raised the price target on Alector, Inc. (NASDAQ: ALEC) to $43 from $31 and reiterated a “Buy” rating on the shares. On July 2, Alector, Inc. (NASDAQ: ALEC) and GlaxoSmithKline plc (NYSE: GSK) made public a global partnership to research two monoclonal antibodies, AL001 and AL101. The antibodies are designed to enhance progranulin, a compound controlling the immune activity in the brain with genetic connections to several neurodegenerative diseases.
Euclidean Capital holds 980,894 shares in Alector, Inc. (NASDAQ: ALEC) worth $19.76 million, representing 6.6% of its portfolio. Casdin Capital is a leading shareholder in Alector with 1.65 million shares worth more than $33 million.
3. ORIC Pharmaceuticals, Inc. (NASDAQ: ORIC)
Simons’ Stake Value: $24,420,000
Percentage of Jim Simons’ 13F Portfolio: 8.17%
Number of Hedge Fund Holders: 13
ORIC Pharmaceuticals, Inc. (NASDAQ: ORIC) is a clinical-stage biopharmaceutical company that discovers and develops medicines to treat cancers. It ranks third on the list 10 best pharma and biotech stocks to buy according to Jim Simons’ Euclidean Capital. ORIC currently has a $19.1 billion market capitalization.
On July 6, Citi analyst Yigal Nochomovitz upgraded ORIC Pharmaceuticals, Inc. (NASDAQ: ORIC) from “Neutral” to “Buy” with a price target of $34. On June 28, ORIC Pharmaceuticals announced that the U.S. FDA cleared the company’s experimental new drug application for ORIC-533 to progress into a first-in-human clinical study. ORIC-533 plays a primary role in resistance to chemotherapy and immunotherapy-based treatment regimens.
Euclidean Capital holds 996,734 shares in ORIC Pharmaceuticals, Inc. (NASDAQ: ORIC) worth over $24 million, representing 8.17% of their portfolio. The hedge fund has trimmed stakes in the firm by 29% in the past few months. Out of the hedge funds being tracked by Insider Monkey, EcoR1 Capital is a leading shareholder in ORIC Pharmaceuticals, Inc. (NASDAQ: ORIC) with 3.09 million shares worth $75.76 million.
2. NGM Biopharmaceuticals, Inc. (NASDAQ: NGM)
Simons’ Stake Value: $43,412,000
Percentage of Jim Simons’ 13F Portfolio: 14.52%
Number of Hedge Fund Holders: 18
NGM Biopharmaceuticals, Inc. (NASDAQ: NGM) is a biopharmaceutical company, which discovers and develops medicines to treat liver and metabolic diseases, retinal infections, and cancer. The company stands second on the list 10 best pharma and biotech stocks to buy according to Jim Simons’ Euclidean Capital. NGM shares have offered investors returns of 19.97% over the course of the past 12 months.
On July 7, Piper kept an “Overweight” rating on the shares with a price target of $20. On July 1, NGM Biopharmaceuticals, Inc. (NASDAQ: NGM) extended its ongoing collaboration with Merck & Co., Inc. (NYSE: MRK). Under the terms of the altered collaboration, Merck will provide about $120 million in R&D funding to NGM through March 2024. The partnership will focus mainly on developing novel drugs in retinal, cardiovascular, and metabolic disorders. On May 6, NGM Biopharmaceuticals (NASDAQ: NGM) posted earnings for the first quarter of 2021. It reported earnings per share of -$0.36, beating market predictions by $0.05.
Euclidean Capital owns 1.49 million shares in NGM Biopharmaceuticals, Inc. (NASDAQ: NGM) after reducing its holding by 29%. At the end of the first quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $329.28 million in NGM Biopharmaceuticals, Inc. (NASDAQ: NGM), up from 13 the preceding quarter worth $231.63 million.
1. PMV Pharmaceuticals, Inc. (NASDAQ: PMVP)
Simons’ Stake Value: $137,461,000
Percentage of Jim Simons’ 13F Portfolio: 45.99%
Number of Hedge Fund Holders: 21
PMV Pharmaceuticals, Inc. (NASDAQ: PMVP) is a pharmaceutical company that develops and discovers small molecule drugs to treat cancer and contagious disease. It was founded in 2013 and ranks first on the list of 10 best pharma and biotech stocks to buy according to Jim Simons’ Euclidean Capital. PMV currently has a $1.56 billion market capitalization.
On June 23, Cowen analyst Yaron Werber initiated a coverage on PMV Pharmaceuticals, Inc. (NASDAQ: PMVP) with an “Outperform” rating. On May 14, the company declared that its first quarter of 2021 ended with $348.4 million in cash and marketable securities compared to $361.4 million a quarter earlier.
Euclidean Capital owns 4.18 million shares in PMV Pharmaceuticals, Inc. (NASDAQ: PMVP), worth over $137 million, representing 45.99% of their portfolio. Samuel Isaly’s OrbiMed Advisors is the biggest stakeholder in the company, with 7.33 million shares worth over $241 million.
You can also take a peek at 10 Best Biotech Stocks To Invest In and Top 10 Sin Stocks To Buy.
