In this article we discuss the 5 best pharmaceutical stocks to buy according to billionaire Kerr Neilson. If you want to read our detailed analysis of Neilson’s history and hedge fund performance, go directly to the 10 Best Pharmaceutical Stocks to Buy According to Billionaire Kerr Neilson.
5. Zai Lab Limited (NASDAQ: ZLAB)
Neilson’s Stake Value: $7,262,000
Percent of Kerr Neilson’s 13F Portfolio: 0.16%
Number of Hedge Fund Holders: 30
Zai Lab Limited (NASDAQ: ZLAB) is a Chinese biopharmaceutical company that specialises in discovering, developing, licencing, and commercializing therapeutics for treatment of oncology, autoimmune, and infectious diseases.
Early this year, the company announced its financial results for the second half and full year of 2020 in which it reported $49.0 million in total revenues for the FY 2020 compared to $13.0 million reported in the FY 2019. During the year, biopharmaceutical company’s sales of Optune amounted to $16.4 million compared to $6.4 million reported in the previous year. Zai Lab reported a net loss of $268.9 million or $3.46 per share in FY2020 compared to a net loss of $195.1 million or $3.03 per share reported in FY2019.
Zai Lab Limited (NASDAQ: ZLAB) has also announced expansion of its partnership with Turning Point Therapeutics, Inc. (NASDAQ: TPTX), a precision oncology company that specialises in development of next-generation therapies that target genetic drivers of cancer. Under the new agreement, Zai Lab has been granted exclusive rights to develop and commercialise TPX-0022, Turning Point’s MET, SRC and CSF1R inhibitor in Greater China.
In return, Turning Point will be paid a $25 million upfront with an additional $336 million to be paid in form of development, regulatory and sales-based milestone payments. Under the terms of the agreement, Turning Point will also be paid royalties based on annual net sales of TPX-0022 in the region that will also include Hong Kong, Macau and Taiwan.