In this article, we discuss the 5 pharmaceutical stocks to buy under $20 according to Jeremy Green’s Redmile Group portfolio based on Q3 holdings of the fund. If you want to read our detailed analysis of Green’s history, investment philosophy, and hedge fund performance, go directly to the 10 Pharmaceutical Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group.
5. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Redmile Group Stake Value: $198,633,000
Percentage of Redmile Group’s 13F Portfolio: 3.46%
Number of Hedge Fund Holders: 31
Price per Share as of Nov. 23, 2021: $11.24
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is a biotech company focused on developing medicinal treatments for rare metabolic illnesses. According to the most recent 13F filings, Perceptive Advisors is the largest investor in Amicus Therapeutics, Inc. as of the third quarter of 2021, with 26.56 million shares valued at more than $253.64 million.
On November 15, Stifel analyst Dae Gon Ha upgraded Amicus Therapeutics to “Buy” from “Hold” with a price target of $16, up from $12.
Amicus Therapeutics, Inc. was owned by 31 hedge funds out of the 867 funds tracked by Insider Monkey in the third quarter of 2021, down from 34 the previous quarter. These holdings are worth a total of $833.72 million.
In its first-quarter 2021 investment letter, Carillon Tower Advisers mentioned Amicus Therapeutics, Inc. (NASDAQ: FOLD). Here is what it said:
“Amicus Therapeutics is a biotechnology company focused on discovering, developing, and delivering novel high-quality medicines for people living with rare metabolic diseases. The firm’s shares slumped after it reported disappointing results in the phase three trial for its drug to be used in the treatment of late-onset Pompe disease (LOPD). Unfortunately, the trial data did not generate statistical significance in the primary endpoint.”
4. Absci Corporation (NASDAQ:ABSI)
Redmile Group Stake Value: $93,402,000
Percentage of Redmile Group’s 13F Portfolio: 1.62%
Number of Hedge Fund Holders: 12
Price per Share as of Nov. 23, 2021: $10.50
Absci Corporation (NASDAQ:ABSI) is a drug and target discovery business that uses deep learning AI and synthetic biology to help proteins reach their full therapeutic potential. As of Q3 2021, Redmile Group bought over 8.03 million shares in Absci Corporation, valued at $93.40 million. The company represents 1.62% of the hedge fund’s 13F portfolio.
Michael Ryskin, a BofA analyst, downgraded Absci from “Neutral” to “Underperform” in November, with a $10 price target. According to the analyst, the company’s third-quarter profitability and business update were disappointing. In addition, the earnings of Absci Corporation in the third quarter of 2021 fell short of expectations. Despite a 67% increase in sales to $1.5 million year over year, the net loss nearly quadrupled to $10.7 million as R&D, and SG&A spending skyrocketed.
As of the third quarter of 2021, 12 hedge funds tracked by Insider Monkey have positions in Absci Corporation, worth over $250.82 million.
3. Shattuck Labs, Inc. (NASDAQ:STTK)
Redmile Group Stake Value: $114,534,000
Percentage of Redmile Group’s 13F Portfolio: 1.99%
Number of Hedge Fund Holders: 8
Price per Share as of Nov. 23, 2021: $9.61
Shattuck Labs, Inc. (NASDAQ:STTK) is a biotechnology company in the clinical stage. The company focuses on the development of a new class of biological medications for cancer and autoimmune illnesses. Out of the hedge funds being tracked by Insider Monkey, Redmile Group is a leading shareholder in Shattuck Labs, Inc., with 5.62 million shares worth more than $114.53 million.
The company declared financial data for the third quarter in November. It posted revenue of $1.9 million, missing the estimates by $0.08 million. However, the company’s EPS came in at -$0.41, surpassing the market predictions by $0.03.
As of Q3 2021, 8 hedge funds tracked by Insider Monkey have positions in Shattuck Labs, Inc., up from 6 in the previous quarter. The total value of these stakes is $208.04 million.
2. Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH)
Redmile Group Stake Value: $136,991,000
Percentage of Redmile Group’s 13F Portfolio: 2.38%
Number of Hedge Fund Holders: 29
Price per Share as of Nov. 23, 2021: $8.66
Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) is a biopharmaceutical company based in Waltham, Massachusetts. Redmile Group holds 4.03 million shares worth over $136.99 million, representing 2.38% of their investment portfolio. The hedge fund has trimmed its stake by 6% in the third quarter of 2021.
In November, the firm posted earnings for the third quarter, reporting earnings per share of $0.18, missing market estimates by $0.45. Furthermore, revenue for the quarter was $2.83 billion, increasing more than 78% from last year but $1.57 billion less than expected.
Following the failure of the Phase 3 INTRIGUE study in the second-line gastrointestinal stromal tumor in November, Barclays analyst Peter Lawson downgraded Deciphera to “Equal Weight” from “Overweight,” with a price target of $11, down from $50.
In the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $493.01 million in Deciphera Pharmaceuticals, Inc., down from 23 in the preceding quarter worth $568.34 million.
1. ImmunoGen, Inc. (NASDAQ:IMGN)
Redmile Group Stake Value: $46,825,000
Percentage of Redmile Group’s 13F Portfolio: 0.81%
Number of Hedge Fund Holders: 26
Price per Share as of Nov. 23, 2021: $5.06
ImmunoGen, Inc. (NASDAQ:IMGN) is dedicated to researching and developing antibody-drug conjugates to enhance cancer patient outcomes. Peter Kolchinsky’s RA Capital Management owns 18.42 million shares of ImmunoGen, Inc., worth over $104.43 million, topping the list of over 867 hedge funds tracked by Insider Monkey.
With a $46.83 million stake in ImmunoGen, Jeremy Green’s Redmile Group owns 8.26 million shares of the company in the third quarter of 2021. In addition, our database shows that 26 hedge funds held stakes in the company in the third quarter.
You can also take a peek at 10 Best Pharmaceutical Stocks to Buy According to Billionaire Joseph Edelman and 10 Best Pharmaceutical Stocks to Buy According to Billionaire Kerr Neilson.
