In this article, we discuss 5 biotech stocks to buy according to Matthew Strobeck’s Birchview Capital. If you want to read our detailed analysis of Strobeck’s history, investment philosophy, and hedge fund performance, go directly to 10 Biotech Stocks to Buy According to Matthew Strobeck’s Birchview Capital.
5. Foghorn Therapeutics Inc. (NASDAQ:FHTX)
Birchview Capital Stake Value: $4,376,000
Percentage of Birchview Capital’s 13F Portfolio: 2.97%
Number of Hedge Fund Holders: 7
Foghorn Therapeutics Inc. (NASDAQ:FHTX) is a biotechnology business in the early stages of developing a new class of drugs that target the chromatin regulatory system. H.C. Wainwright analyst Andrew Fein commenced coverage of Foghorn Therapeutics Inc. (NASDAQ:FHTX) with a Buy rating and a price target of $25 on November 22.
Euclidean Capital owns 1.26 million shares of Foghorn Therapeutics Inc. (NASDAQ:FHTX), worth over $17.57 million, and is the leading stakeholder of the company out of the 867 hedge funds tracked by Insider Monkey in the third quarter of 2021. Next on the list of the significant stakeholders of Foghorn Therapeutics Inc. (NASDAQ:FHTX) is Matthew Strobeck’s Birchview Capital, which owns 314,143 shares of the company, worth over $4.38 million.
At the end of the third quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $31.22 million in Foghorn Therapeutics Inc. (NASDAQ:FHTX), up from 5 funds in the preceding quarter, holding stakes in Foghorn Therapeutics Inc. (NASDAQ:FHTX) totalling $22.10 million.
4. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Birchview Capital Stake Value: $7,692,000
Percentage of Birchview Capital’s 13F Portfolio: 5.23%
Number of Hedge Fund Holders: 31
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical business specializing in neurology. Jim Simons’ Renaissance Technologies owns 1.36 million shares of Neurocrine Biosciences, Inc. (NASDAQ:NBIX), worth over $130.05 million, and is the largest shareholder of the company as of Q3 2021.
Piper Sandler analyst David Amsellem cut his price objective on Neurocrine Biosciences, Inc. (NASDAQ:NBIX) from $123 to $114 on January 26 and maintained an Overweight rating on the stock. According to the analyst, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) plans to spend extensively in 2022 to market Ingrezza, expanding its sales team and engaging directly with consumers.
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) saw a decrease in hedge fund sentiment in Q3 2021. The number of long hedge fund positions declined to 31 at the end of the third quarter, compared to 32 positions in the previous quarter.
3. Quidel Corporation (NASDAQ:QDEL)
Birchview Capital Stake Value: $8,424,000
Percentage of Birchview Capital’s 13F Portfolio: 5.73%
Number of Hedge Fund Holders: 22
Quidel Corporation (NASDAQ:QDEL) is a global maker of diagnostic healthcare devices, based in the United States. Birchview Capital started building its position in Quidel Corporation (NASDAQ:QDEL) in the fourth quarter of 2014. Birchview Capital holds 59,684 shares in the company, valued at $8.42 million as of the third quarter of 2021. The company represents 5.73% of the hedge fund’s 13F portfolio.
Among the hedge funds tracked by Insider Monkey, New York-based Rima Senvest Management is a leading shareholder of Quidel Corporation (NASDAQ:QDEL), with 864,827 shares worth more than $122.07 million. Overall, 22 hedge funds in our database held stakes in Quidel Corporation (NASDAQ:QDEL) at the end of the third quarter, compared to 19 funds in the second quarter.
Nelson Capital Management, an investment management firm, in its second-quarter 2021 investor letter, mentioned Quidel Corporation (NASDAQ:QDEL). Here is what the fund said:
“In the healthcare sector, we sold our position in Quidel (tkr: QDEL), a point-of-care testing company, due to declines in Covid-19 testing. Quidel will also face tough comparable data which will further challenge the company. We still like the company and would consider re-entering once results are back to a more normal growth trajectory.”
2. Biodesix, Inc. (NASDAQ:BDSX)
Birchview Capital Stake Value: $9,083,000
Percentage of Birchview Capital’s 13F Portfolio: 6.18%
Number of Hedge Fund Holders: 6
Biodesix, Inc. (NASDAQ:BDSX) is a biotechnology business that specializes in blood-based diagnostics for lung disease patients. Biodesix, Inc. (NASDAQ:BDSX) and PierianDx partnered in January to enhance clinical interpretations of mutations discovered by Biodesix, Inc. (NASDAQ:BDSX)’s recently authorized GeneStrat NGS genomic test.
On November 17, Morgan Stanley analyst Tejas Savant downgraded Biodesix, Inc. (NASDAQ:BDSX) to Equal Weight from Overweight and lowered his price objective to $11 from $21. In a research note, Savant warned investors that COVID-19 challenges are causing near-term concern for Biodesix, Inc. (NASDAQ:BDSX)’s core business.
Biodesix, Inc. (NASDAQ:BDSX) was in 6 hedge funds’ portfolios at the end of the third quarter. There were 7 hedge funds in our database with Biodesix, Inc. (NASDAQ:BDSX) holdings at the end of the previous quarter.
1. Accelerate Diagnostics, Inc. (NASDAQ:AXDX)
Birchview Capital Stake Value: $13,096,000
Percentage of Birchview Capital’s 13F Portfolio: 8.91%
Number of Hedge Fund Holders: 8
Accelerate Diagnostics, Inc. (NASDAQ:AXDX) is an in vitro diagnosis firm specializing in infectious pathogen fast diagnostics. According to the 13F filings for the third quarter of 2021, Birchview Capital holds over 2.25 million shares of Accelerate Diagnostics, Inc. (NASDAQ:AXDX), amounting to more than $13.10 million, representing 8.91% of the fund’s portfolio value.
Craig-Hallum analyst Alex Novak cut his price objective for Accelerate Diagnostics, Inc. (NASDAQ:AXDX) from $12 to $9 on January 14, and maintained a Buy recommendation on the stock. The company’s preannounced results, the analyst wrote in a research note, were a continuation of prior quarters as the firm struggled amid COVID-19 breakouts.
Overall, 8 hedge funds monitored by Insider Monkey were bullish on Accelerate Diagnostics, Inc. (NASDAQ:AXDX) in the third quarter. The stakes held by these funds are valued at $18.04 million.
You can also take a peek at 10 Best Biotech Stocks to Buy According to Joseph Edelman’s Perceptive Advisors and 9 Latest Stock Picks of Chinese Billionaire Chen Tianqiao’s Shanda Asset Management.
