In this article, we discuss the Billionaire Joe Edelman’s Stock Picks with Huge Upside Potential.

Joseph Edelman, the billionaire chief of New York-based Perceptive Advisors, specializes in the biotechnology and life sciences sectors. Under his leadership, his fund has grown into one of the most successful healthcare-focused hedge funds in the world, managing $5.6 billion in the 13F portfolio at the end of the fourth quarter of 2025. His investment strategy often focuses on clinical-stage biotech firms with the potential for massive breakouts. In recent weeks, biotech markets have officially thawed, with acquisitions and fundraising accelerating through the first three weeks of April. This resurgence is largely driven by the patent cliff, as major pharmaceutical companies face a loss of exclusivity on over $200 billion in annual sales by 2030. To replenish pipelines, bio-buying has become the dominant strategy.

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In mid-April, Gilead notably shifted focus from acquisitions to pipeline execution after digesting three major acquisitions. Meanwhile, global players like Merck and Sanofi continue to target startups with clean intellectual property and late-stage assets in oncology and metabolic diseases. The obesity gold rush remains a primary market driver. Reports from San Diego’s Fierce Pharma Engage conference underscore that the GLP-1 market, which generated over $70 billion in 2025, is entering its next generation. Investors are now focused on oral therapies and dual-agonist drugs, like amycretin and retatrutide, that offer improved tolerability and weight-loss durability.

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Our Methodology

For this article, we selected stocks by combing through the 13F portfolio of Perceptive Advisors at the end of the fourth quarter of 2025. The top 50 stocks were ranked based on their analyst upside potential and the top 10 from this list were filtered out. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Billionaire Joe Edelman’s Stock Picks with Huge Upside Potential

10. Protagonist Therapeutics, Inc. (NASDAQ:PTGX)

Perceptive Advisors’ Stake: $118 Million

Analyst Upside Potential: 41%

Elite investors have been positioning themselves in Protagonist Therapeutics, Inc. (NASDAQ:PTGX) stock as the firm transforms from a clinical-stage biotech to a high-margin commercial royalty engine. An important reason for interest in the shares this year has been the FDA approval of Icotyde for moderate-to-severe plaque psoriasis. Icotyde is the only once-daily oral IL-23R peptide on the market. Wall Street views it as a disruptive alternative to existing injectables, offering the convenience of a pill with the potency of a biologic. The drug was developed in collaboration with Johnson & Johnson, which holds exclusive commercialization rights. This partnership de-risks the launch for Protagonist, as J&J’s massive marketing machine will drive adoption while Protagonist collects high-margin royalties.

Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is rapidly improving the balance sheet following the commercial pivot. The FDA approval triggered an immediate $50 million milestone payment from J&J. The company remains eligible for up to $580 million in additional regulatory and sales milestones, plus tiered royalties, 6% to 10%, on global net sales. Hedge funds view this as a guaranteed, low-risk cash flow stream that could fund the rest of the company’s pipeline for years. These funds are also pricing in the success of Rusfertide, the company’s lead candidate for a rare blood disorder. In March, Protagonist submitted its New Drug Application for Rusfertide, backed by successful 52-week Phase 3 data.

9. Ascendis Pharma A/S (NASDAQ:ASND)

Perceptive Advisors’ Stake: $231 Million

Analyst Upside Potential: 48%

The primary catalyst for hedge fund interest in Ascendis Pharma A/S (NASDAQ:ASND) stock over the past few weeks is the FDA approval of YUVIWEL for children with achondroplasia. Earlier this month, Ascendis received Orphan Drug Exclusivity and officially launched YUVIWEL in the United States. YUVIWEL is a major competitor to BioMarin’s Voxzogo. Analysts note that YUVIWEL’s once-weekly dosing schedule offers a significant lifestyle advantage over daily injectables, which is expected to drive market share gains. The firm recently completed its transition from American Depositary Shares (ADSs) to a direct listing of ordinary shares on the Nasdaq. This structural change was designed specifically to broaden access to global investors.

Top investors are buying Ascendis Pharma A/S (NASDAQ:ASND) stock ahead of potential inclusion in major equity indexes like the Russell 1000 or specialized biotech indexes. Direct listings often lead to increased trading liquidity and higher levels of passive institutional ownership. Recent trial successes have de-risked the company’s broader TransCon platform. In the beginning of April, data showed that combining TransCon hGH with TransCon CNP accelerated benefits for children with achondroplasia beyond linear growth. Similarly, in the InsiGHTS trial, positive data demonstrated comparable efficacy to daily somatropin, potentially opening another multi-billion dollar market for the company’s growth hormone products.

8. Roivant Sciences Ltd. (NASDAQ:ROIV)

Perceptive Advisors’ Stake: $173 Million

Analyst Upside Potential: 55%

Roivant Sciences Ltd. (NASDAQ:ROIV) recently won a major legal battle. In March, Roivant’s subsidiaries, Genevant and Arbutus, reached a $2.25 billion global settlement with Moderna over a COVID-19 vaccine patent. This settlement drastically improved Roivant’s balance sheet, leaving it with over $4.5 billion in cash and zero debt. Institutional investors view this as a war chest that allows the company to fund its entire pipeline through 2028 without needing to dilute shareholders with new stock offerings. These funds are also betting on Brepocitinib to be Roivant’s next multibillion-dollar success story following the sale of Telavant to Roche. In late March, the New England Journal of Medicine published positive Phase 3 VALOR trial results for Brepocitinib. The drug achieved a significant 21.6-point improvement in patient scores, which Jefferies analysts called best-in-class.

Roivant Sciences Ltd. (NASDAQ:ROIV) stock has surged since the FDA recently granted Priority Review for Brepocitinib in dermatomyositis, with a target action date in Q3 2026. Top funds are buying the shares ahead of this potential September launch. The firm also has a shareholder-friendly capital allocation strategy. Roivant completed a $1 billion share repurchase program in late 2025/early 2026, retiring approximately 150 million shares, over 15% of the company. Large-scale buybacks are a major attractant for funds as they increase the slice of the pie for remaining shareholders as the company’s valuation grows. Another catalyst is that the company owns a majority stake in Immunovant, which is developing IMVT-1402, a potential best-in-class treatment for autoimmune diseases.

7. Travere Therapeutics, Inc. (NASDAQ:TVTX)

Perceptive Advisors’ Stake: $163 Million

Analyst Upside Potential: 62%

Investor interest in Travere Therapeutics, Inc. (NASDAQ:TVTX) has spiked since a landmark regulatory win. Earlier this month, drug authorities granted full approval of FILSPARI for focal segmental glomerulosclerosis (FSGS). ILSPARI is now the first and only FDA-approved medication for FSGS, a rare disease that often leads to kidney failure. This first-mover advantage is viewed as a massive moat. The approval is broad, covering both adult and pediatric patients. This significantly expanded the drug’s addressable market beyond its existing use in IgA nephropathy. Analysts estimate that the combined US market for IgAN and FSGS exceeds 100,000 patients, with peak domestic sales potential now projected above $3 billion.

Hedge funds like the fact that Travere Therapeutics, Inc. (NASDAQ:TVTX) already has a specialized nephrology sales force of 100+ professionals in the field. This allows for an immediate, high-margin commercial launch without the growing pains of building a new team. Beyond FILSPARI, funds are looking at the next wave of clinical catalysts. Travere is on track to restart its pivotal Phase 3 HARMONY study for pegtibatinase in early 2026. Travere’s partner, Chugai Pharmaceutical, is expected to submit a New Drug Application for sparsentan in Japan this year, which would trigger additional milestone payments and royalties for the company.

6. Apogee Therapeutics, Inc. (NASDAQ:APGE)

Perceptive Advisors’ Stake: $176 Million

Analyst Upside Potential: 68%

Elite money managers are aggressively accumulating Apogee Therapeutics, Inc. (NASDAQ:APGE) stock, viewing it as the primary challenger to established blockbuster drugs in the immunology space. The firm recently released positive Phase 2 data for its lead candidate, Zumilokibart. The trial demonstrated that roughly 75% to 85% of patients maintained their response with dosing just every 3 or 6 months. Investors are betting that Apogee’s extended half-life technology will disrupt the market currently dominated by Sanofi’s Dupixent. Analysts note that a once-every-six-months injection offers a massive lifestyle advantage over Dupixent’s every-two-week requirement. Following the positive clinical data, Apogee successfully executed a heavily oversubscribed public offering.

In March, Apogee Therapeutics, Inc. (NASDAQ:APGE) closed a public offering raising $403 million in gross proceeds. Hedge funds view this massive capital raise as a de-risking event. The company now has a cash runway that extends into 2028, allowing it to fund its Phase 3 atopic dermatitis trials, set to begin in late 2026, and its asthma program without further dilution. The inflammatory and immunology market is one of the largest in healthcare. Analysts from Stifel and Guggenheim have recently set price targets as high as $110–$130, citing Apogee’s potential to capture market share from $14 billion-$20 billion drugs like Dupixent and Humira.

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