In this article, we will take a look at the 5 biotech stocks with huge potential. To read our analysis of the recent trends and market activity, you can go to the 10 Biotech Stocks with Huge Potential.
5. Incyte Corporation (NASDAQ:INCY)
Number of Hedge Fund Holders: 37
Wilmington, Delaware-based Incyte Corporation (NASDAQ:INCY) is global biopharmaceutical company focused on the discovery, development, and commercialization of novel medicines across Oncology and Inflammation & Autoimmunity.
On February 27, Incyte Corporation (NASDAQ:INCY) announced that the FDA has granted priority review for axatilimab, an anti-CSF-1R antibody, for the treatment of chronic graft-versus-host disease (GVHD) after failure of at least two prior lines of systemic therapy.
Axatilimab is being developed by Incyte Corporation (NASDAQ:INCY) and Syndax Pharmaceuticals (NASDAQ:SNDX) as part of an exclusive worldwide co-development and co-commercialization license agreement.
As of Q4 2023, Incyte Corporation (NASDAQ:INCY) shares were held by 37 hedge funds with the total shares held by these hedge funds valued at $3.4 billion. Baker Bros. Advisors was the lead hedge fund shareholder with ownership of 36.2 million shares valued at $2.3 billion.
4. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 39
Cambridge, Massachusetts-based Moderna, Inc. (NASDAQ:MRNA) is a leading biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. In addition to the commercial stage covid19 vaccine, the clinical pipeline of the company includes therapeutics and vaccines for infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and auto-immune diseases.
On December 11, Moderna, Inc. (NASDAQ:MRNA) and Merck (NYSE: MRK) announced the initiation of INTerpath-002, a pivotal Phase 3 randomized clinical trial evaluating V940 (mRNA-4157), an investigational individualized neoantigen therapy, in combination with Merck’s KEYTRUDA, as adjuvant treatment in patients with certain types of resected non-small cell lung cancer.
Moderna, Inc. (NASDAQ:MRNA) shares were owned by 37 leading hedge funds with the total shares held by them valued at nearly $1.4 billion, as of Q4 2023. Patrick Degorce’s Theleme Partners was the lead hedge fund shareholder with ownership of 7.3 million shares valued at $731 million.
3. Jazz Pharmaceuticals Plc (NASDAQ:JAZZ)
Number of Hedge Fund Holders: 42
Founded in 2003, Dublin, Ireland-based Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) is a global biopharmaceutical company with a diverse portfolio of marketed medicines, including therapies for sleep disorders and epilepsy, and a growing portfolio of cancer treatments.
On January 29, Barclays lowered the price target for Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) shares to $235 from $240 and maintained an ‘Overweight’ rating for its shares. The target price represents a potential upside of 77.92%, one of the highest on our list of 10 biotech stocks with huge potential.
As of Q4 2023, Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) shares were owned by 42 hedge funds with the total shares held by them valued at $1.2 billion. Its largest hedge fund shareholder was Bernard Horn’s Polaris Capital Management with ownership of 1.3 million shares valued at $156 million.
2. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 59
Based in Tarrytown, New York, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a leading biotechnology company that focus on developing therapies for eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, pain, hematologic conditions, infectious diseases, and rare diseases.
On February 23, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced that it the FDA has accepted for Priority Review the application for Dupixent® (dupilumab) in a sixth potential indication as an add-on maintenance treatment in certain adult patients with uncontrolled chronic obstructive pulmonary disease (COPD). If approved, Dupixent would be the only biologic therapy for COPD. The Priority Review has been granted based on positive results from two Phase 3 trials.
Following the announcement, RBC Capital raised the price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) shares to $1184 from $1096 and maintained an ‘Outperform’ rating on the shares.
1. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Holders: 62
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a pharmaceutical company focused on creation of transformative medicines for people with serious and life-threatening diseases. It discovered and developed the first medicines to treat the underlying cause of cystic fibrosis, a rare, life-threatening genetic disease.
On February 13, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) announced that the European Commission has granted conditional marketing authorization to CASGEVY for the treatment of Sickle Cell Disease and Transfusion-Dependent Beta Thalassemia (TDT). Previously, the company received FDA approval for CASGEVY for the treatment of TDT in patients 12 years and older.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) ranks #1 on our list of 10 biotech stocks with huge potential. Its shares were widely owned by hedge funds, as of Q4 2023, with 62 prominent hedge funds tracked by Insider Monkey holding its shares valued at $2.5 billion.
Harding Loevner, an asset management company, made the following comments about Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its “Global Equity Strategy” Q4 2023 investor letter:
“Unlike most drug developers, which focus on mitigating symptoms of an illness, Vertex seeks to understand and address the causal biology of a disease more fully. This approach has helped the company establish a wide lead in treating cystic fibrosis (CF), a rare disease that causes mucus buildup in organs such as the lungs. Vertex’s research and treatments have targeted the root cause of CF, which is that a particular protein becomes misfolded and unable to move chloride out of a cell, resulting in an imbalance between salt and water. Its scientists have been able to do this by working with the lung cells of real CF patients, an advantage over using engineered animal cells to simulate the disease-causing mechanism to determine which drug candidate is most promising for humans.”
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