Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Akorn, Inc. (AKRX), United Therapeutics Corporation (UTHR) Among Consonance Capital’s Winning Bets in Healthcare

Among the top three largest stocks in Consonance’s equity portfolio, two holdings are represented by small-cap stocks. On the first spot is Enanta Pharmaceuticals Inc (NASDAQ:ENTA), a $654 million biotech company, whose stock gained 86% during last year. The fund initiated a stake during the fourth quarter of 2013 and during the last year, the position was increased to 1.70 million shares from 851,300 shares, the value of the stake amounting to $86.25 million. Another healthcare-focused fund that owns shares of Enanta Pharmaceuticals Inc (NASDAQ:ENTA) is Julian Baker and Felix Baker‘s Baker Bros. Advisors, although it holds only 75,400 shares as of the end of 2014. As Enanta Pharmaceuticals Inc (NASDAQ:ENTA) lost around 32% since the beginning of the year, two analysts provided updates on the stock; JPMorgan lowered its price target to $47.00 from $53.00, maintaining ‘Overweight’ rating, while Barclays initiated coverage at the beginning of March, setting ‘Equal Weight’ rating and a price target of $35.00.

In United Therapeutics Corporation (NASDAQ:UTHR), Consonance reported an $85.49 million stake that contains 660,200 shares. United Therapeutics is another biotech stock that has a market cap of $8.0 billion and whose stock surged by 70% in the last 52 weeks, beating the industry average of 33%. Last week United Therapeutics Corporation (NASDAQ:UTHR) received the approval from the Food and Drug Administration for a drug to treat a rare childhood cancer. Morover, the company also obtained a rare voucher that allows it to speed through the regulatory process. The company now has to make a decision whether it will pursue the regulatory process, or it could sell the voucher for a significant amount of cash (the last similar transaction was valued at over $65 million). According to the terms of the voucher, the FDA needs to come to a decision regarding the drug within six months (but it is not obliged to approve it). In any case, this voucher is a big win for United Therapeutics. Matt Sirovich and Jeremy Mindich‘s Scopia Capital is one of the largest shareholders of United Therapeutics Corporation (NASDAQ:UTHR), holding 2.96 million shares as of the end of 2014.

The third largest holding in the fund’s equity portfolio is represented by Cardiovascular Systems Inc (NASDAQ:CSII). Consonance disclosed holding 2.14 million shares of the medical technology company, with an aggregate value of $64.23 million. Billionaire Steven Cohen‘s Point72 Asset Management is another shareholder of Cardiovascular Systems Inc (NASDAQ:CSII), which holds 426,000 shares, according to its last 13F filing. For the last year, Cardiovascular Systems Inc (NASDAQ:CSII), which produces devices for the treatment of vascular diseases, posted strong revenue of $45 million, versus $43 million a year earlier. Moreover, the company’s net loss narrowed to $0.17 per share from $0.23.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...