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Five Cheap Healthcare Stocks Poised to Explode

#3 Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)

Investors with Long Positions (as of September 30): 29

Aggregate Value of Investors’ Holdings (as of September 30): $232.65 Million

At the end of September, hedgies held about 21.1% of Ariad’s float. While the total number of firms holding Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) in their portfolios decreased by two during the third quarter, the corresponding drop in the aggregate value of holdings was 42%. The stock depreciated by more than 27% during the same period. Currently, the stock is trading just around 7% above its 52 week-low level. Sarissa Capital Management, led by Alex Denner, owns 12.85 million shares of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) as of the end of September. Recently, the company’s shares have fallen sharply when it lowered the 2015 guidance for its leukemia drug Iclusig, owing to continuing negotiations with the French authorities about the drug’s pricing and reimbursement.

#2 Synergy Pharmaceuticals Inc (NASDAQ:SGYP)

Investors with Long Positions (as of September 30): 31

Aggregate Value of Investors’ Holdings (as of September 30): $134.64 Million

The total number of hedge funds holding the company remained unchanged during the July-September period, but the aggregate value of these holdings slid by 25%. The stock price of the $679.54 million biopharmaceutical company focused on treatment of gastrointestinal disorders cratered by 38% during this period. Collectively hedgies held about 22.6% of Synergy Pharmaceuticals Inc (NASDAQ:SGYP)’s outstanding shares at the end of September. John Paulson‘s Paulson & Co hiked its stake in Synergy Pharmaceuticals Inc (NASDAQ:SGYP) by 56% to 9 million shares during the third quarter. The company recently appointed Gary Sender as its new Chief Financial Officer, and plans to launch its late-stage product, plecanatide, in early 2017.

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#1 Rite Aid Corporation (NYSE:RAD)

Investors with Long Positions (as of September 30): 46

Aggregate Value of Investors’ Holdings (as of September 30): $1 Billion

The $8.11 billion drugstore chain is set to be acquired by rival Walgreens in an all-cash transaction, valued at $17.2 billion. During the third quarter, Rite Aid Corporation (NYSE:RAD)’s stock price fell by more than 26%. While the number of investors holding the stock in their portfolios fell by nine during the same period, the value of their holdings slid by $31 million. Jeremy Green‘s Redmile Group heads the list of Rite Aid Corporation (NYSE:RAD)’s investors holding about 8.07 million shares. JP Morgan downgraded the retail drugstore chain to ‘Neutral’ from ‘Overweight’ last month and set a price target of $9, which provides an upside of 13% to the current trading levels.

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Disclosure: none

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