RA Capital’s Top Q2 Performers; Predicts Big Things Ahead for Pharma Stocks

Axovant Sciences Ltd (NYSE:AXON)

– Shares Owned by RA Capital Management (as of June 30): 5.00 Million

– Value of RA Capital Management’s Holding (as of June 30): $64.20 Million

– Q2 Return: 11.9%

Axovant Sciences Ltd (NYSE:AXON) was the third-largest holding in RA Capital Management’s set of positions at the end of June, accounting for 8.9% of the asset manager’s overall portfolio. Mr. Kolchinsky and his team did not reshuffle the 5.00 million-share stake in Axovant during the three months that ended June 30, which was valued at $64.20 million on the last day of June. Axovant Sciences is a clinical-stage biopharmaceutical company focused on developing novel therapeutics for the treatment of dementia. The company’s lead product candidate, called intepirdine, is currently being developed for the treatment of mild-to-moderate Alzheimer’s disease and dementia with Lewy bodies, or DLB. As drug companies are testing new methods to persuade more people to participate in clinical trials for promising medicines, Axovant Sciences teamed up with ride-hailing service Lyft Inc. to transport patients to and from clinics to study a prospective Alzheimer’s drug. Ken Griffin’s Citadel Advisors LLC owns approximately 573,000 shares of Axovant Sciences Ltd (NYSE:AXON) as of the end of the second quarter.

Wave Life Sciences Ltd (NASDAQ:WVE)

– Shares Owned by RA Capital Management (as of June 30): 7.09 Million

– Value of RA Capital Management’s Holding (as of June 30): $146.66 Million

– Q2 Return: 49.1%

Wave Life Sciences Ltd (NASDAQ:WVE) was the biggest position in RA Capital’s portfolio at the end of the June quarter. The 7.09 million-share position, untouched during the April-June period, was worth $146.66 million on June 30 and accounted for 20.3% of the asset manager’s overall portfolio. The preclinical biotechnology company uses a proprietary synthetic chemistry drug development platform to design and develop a pipeline of nucleic acid therapeutic candidates. The company’s most advanced therapeutic programs are in Huntington’s disease and Duchenne muscular dystrophy. Wave Life Sciences plans to file investigational new drug applications with the FDA for its lead candidates in late 2016 and mid-2017. There were four hedge funds followed by Insider Monkey invested in Wave Life Sciences at the end of March, amassing 43% of the company’s total number of outstanding shares. The company’s stock has gained 30% since the start of the year. Jim Simons’ Renaissance Technologies LLC was the owner of 35,700 shares of Wave Life Sciences Ltd (NASDAQ:WVE) at the end of June.

Disclosure: None