5 Biotech and Pharmaceutical Stocks to Buy According to Palo Alto Investors

In this article, we will discuss 5 biotech and pharmaceutical stocks to buy according to Palo Alto Investors based on Q2 holdings of the fund. If you want to read our detailed analysis of Palo Alto Investors’ history, investment philosophy, and hedge fund performance, go directly to the 10 Biotech and Pharmaceutical Stocks to Buy According to Palo Alto Investors.

5. Biogen Inc. (NASDAQ:BIIB)

Palo Alto Investors’ Stake Value: $125,211,000
Percent of 13F Portfolio: 6.9%
Number of Hedge Fund Holders: 67

Biogen Inc. (NASDAQ:BIIB) is a biotechnology firm based in the United States specializing in researching, developing, and distributing medicines to treat neurological disorders. It was incorporated in 1978 and is ranked fifth on the list of 15 biotech and pharmaceutical stocks to buy according to Palo Alto Investors. Biogen Inc. (NASDAQ:BIIB) presently has a market capitalization of $43.47 billion.

The hedge fund chaired by Joon Yun holds 361,600 shares in Biogen Inc. (NASDAQ:BIIB) worth over $125.21 million. Overall, hedge fund sentiment increased for Biogen Inc. (NASDAQ:BIIB). The number of hedge fund positions raised to 67 at the end of the second quarter compared to 63 positions in the prior quarter.

In its second-quarter 2021 investor letter Miller, Value Partners mentioned Biogen Inc. (NASDAQ:BIIB). Here is what the fund said:

“We started building a position in Biogen (BIIB) following the approval in early June of Aduhelm, their controversial Alzheimer’s drug. The stock initially traded up to an intra-day high of $468.55 and subsequently traded down to a low of $340.27 near the end of June. We believe the significant unmet need will lead to higher than expected demand for the drug.”