5 Worst Performing Healthcare Stocks in 2023

In this article, we discuss 5 worst performing healthcare stocks in 2023. If you want to read our detailed discussion about the biotech industry, head over to 15 Worst Performing Healthcare Stocks in 2023.

5. Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE)

YTD Share Price Decline as of August 13: 28.79% 

Number of Hedge Fund Holders: 17

Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) is a biotechnology firm that is currently at the clinical-stage. It develops therapies for neurological disorders and is working on clinical trials for different medications. On August 2, Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) announced a Q2 GAAP loss per share of $0.63, beating Wall Street estimates by $0.06. The stock has plummeted nearly 29% year-to-date as of August 13, making Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) one of the worst performing healthcare companies this year. 

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE), as compared to 16 in the last quarter. Joseph Edelman’s Perceptive Advisors held the largest share in the company, with 6.5 million shares worth $158.8 million.

4. Pfizer Inc. (NYSE:PFE) 

YTD Share Price Decline as of August 13: 29.69%

Number of Hedge Fund Holders: 73

Pfizer Inc. (NYSE:PFE) is a leading pharmaceutical giant that develops, manufactures, and distributes medicines, vaccines, and therapies globally. On August 1, Pfizer Inc. (NYSE:PFE) announced a Q2 non-GAAP EPS of $0.67, which beat expectations by $0.09. However, revenue was reported at $12.7 billion, which fell short of Wall Street estimates by $700 million. It was reported that this significant decline in revenue is attributable to the lack of sales generated by Paxlovid and Comirnaty, the COVID-19 medication and vaccine. 

According to Insider Monkey’s first quarter database, 73 hedge funds were bullish on Pfizer Inc. (NYSE:PFE). In comparison, this number was 75 in the preceding quarter. Cliff Asness’ AQR Capital Management is a prominent shareholder of the company, with 9.3 million shares valued at $380 million. 

Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

3. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)

YTD Share Price Decline as of August 13: 35.58%

Number of Hedge Fund Holders: 42

Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a biotechnology company that focuses on the research and treatment for autoimmune and inflammatory diseases. On July 31, Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) announced a Q2 GAAP loss per share of $1.02, which was an improvement over market estimates by $0.30. In line with this, the revenue was reported at $94.9 million, exceeding analysts’ expectations by $23.78 million. 

According to Insider Monkey’s first quarter database, 42 hedge funds were bullish on Apellis Pharmaceuticals, Inc. (NASDAQ:APLS), compared to 38 hedge funds in the last quarter. Kurt Von Emster’s VenBio Select Advisor held the largest position in the company, with 1.1 million shares worth $733 million. 

2. Moderna, Inc. (NASDAQ:MRNA)

YTD Share Price Decline as of August 13: 43.30% 

Number of Hedge Fund Holders: 40

Moderna, Inc. (NASDAQ:MRNA) is another leading pharmaceutical company that develops medicines and vaccines for autoimmune, cardiovascular, cancer, and other infectious diseases. On August 3, Moderna, Inc. (NASDAQ:MRNA) announced a Q2 GAAP loss per share of $3.62, along with a revenue of $344 million, outperforming Wall Street estimates by $0.48 and $38.44 million, respectively. However, the shares have plummeted over 43% year-to-date as of August 13, classifying Moderna, Inc. (NASDAQ:MRNA) as one of the worst performing healthcare stocks this year. 

According to Insider Monkey’s first quarter database, a total of 40 hedge funds were bullish on Moderna, Inc. (NASDAQ:MRNA). In comparison, 52 hedge funds held the stock during the previous quarter. Philippe Laffont’s Coatue Management was the largest shareholder in the company, with 6.5 million stocks valued at $1 billion. 

Baron Health Care Fund made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q1 2023 investor letter:

“Moderna, Inc. (NASDAQ:MRNA) is a leader in the emerging field of mRNA-based vaccines and therapeutics and was one of the three main producers of the COVID vaccine. Shares fell during the quarter. We believe as COVID shifts away from pandemic status and becomes an increasingly commercial market (rather than government funded), there is increasing investor uncertainty around what a booster market could look like, which is pressuring shares. Looking beyond COVID, we think Moderna has the potential to disrupt the biopharmaceutical industry, from infectious disease vaccines to oncology, and we remain shareholders.”

1. NovoCure Limited (NASDAQ:NVCR)

YTD Share Price Decline as of August 13: 54.02%

Number of Hedge Fund Holders: 19

NovoCure Limited (NASDAQ:NVCR) focuses on developing solutions to treat tumors and cancer. On July 27, NovoCure Limited (NASDAQ:NVCR) announced a Q2 GAAP loss per share of $0.54, which failed to meet market estimates by $0.04. However, the revenue came in at $126.05 million, surpassing Street consensus by $1.8 million. As of August 13, NovoCure Limited (NASDAQ:NVCR) stock has plummeted 54% year-to-date, making it one of the worst performing healthcare companies this year. 

According to Insider Monkey’s first quarter database, 19 hedge funds were bullish on NovoCure Limited (NASDAQ:NVCR). In contrast, 17 hedge funds invested in the company during the previous quarter. Dmitry Balyasny’s Balyasny Asset Management held the largest share in the company, with 358,029 shares worth $21.5 million.

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