In this article, we discuss the top 10 stock picks of Samuel Isaly’s OrbiMed Advisors.
Samuel Isaly graduated from Princeton University with an A.B. in Economics and completed his M.Sc. in Economics from the London School of Economics. He has worked as a pharmaceutical analyst at Chase Manhattan Bank, Merrill Lynch, Legg Mason, and S.G. Warburg during his career. Isaly founded OrbiMed Advisors in 1989. While at OrbiMed Advisors, Isaly was the portfolio manager of Worldwide Healthcare Trust Plc for 22 years.
OrbiMed Advisors looks to invest in companies offering biopharmaceuticals, medical devices, digital health, diagnostics, and healthcare services to help people live healthier, longer, and happier lives worldwide. The long-term purpose of the hedge fund is to manage a portfolio roughly split between large healthcare businesses and small-cap companies where the investment team feels that future growth is currently undervalued. In the third quarter of 2021, OrbiMed Advisors’ 13F public stock portfolio was valued at $9.10 billion, with a top 10 holdings concentration of 29.71%.
Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Inc. (NASDAQ:BIIB), and Thermo Fisher Scientific Inc. (NYSE:TMO), among others, are some of the most important holdings from Samuel Isaly’s stock portfolio in the third quarter of 2021.
Samuel Isaly’s hedge fund owns 287,600 shares of Gilead Sciences, Inc. (NASDAQ:GILD), worth over $20.09 million. In December, Mohit Bansal of Wells Fargo initiated coverage of Gilead Sciences, Inc. (NASDAQ:GILD) with an “Equal Weight” rating and a $72 price target.
Samuel Isaly, Founder of Orbimed Advisors
OrbiMed Advisors holds 234,200 shares in Biogen Inc. (NASDAQ:BIIB), worth over $66.28 million. This represents 0.72% of its Q3 portfolio. The hedge fund’s stake in the company increased by 248% in the third quarter of 2021. On January 3, Canaccord analyst Sumant Kulkarni lowered his price target on Biogen Inc. (NASDAQ:BIIB) to $335 from $390 and reiterated a “Buy” rating on the shares.
Samuel Isaly’s OrbiMed Advisors holds 110,300 shares of Thermo Fisher Scientific Inc. (NYSE:TMO), worth over $63.02 million, representing 0.69% of its Q3 portfolio. In December, Wells Fargo analyst Dan Leonard raised his price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $700 from $625 and maintained an “Equal Weight” rating on the shares.
Our Methodology
Here is a list of the top 10 stock picks of Samuel Isaly’s OrbiMed Advisors. We used Isaly’s 13F portfolio for Q3 2021 for this analysis. For each stock, we have mentioned the hedge fund sentiment, which was gathered from the 867 elite funds monitored by Insider Monkey in the third quarter of 2021.
Top Stock Picks of Samuel Isaly’s OrbiMed Advisors
10. Adagio Therapeutics, Inc. (NASDAQ:ADGI)
OrbiMed Advisors Stake Value: $227,399,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.49%
Number of Hedge Fund Holders: 12
Adagio Therapeutics, Inc. (NASDAQ:ADGI) is a biotech company specializing in researching, developing, and marketing antibody-based treatments for infectious diseases with pandemic potential. Adagio Therapeutics, Inc. (NASDAQ:ADGI) is a new arrival in Samuel Isaly’s Q3 portfolio, as his hedge fund bought about 5.38 million shares of the company, worth $227.40 million.
Adagio Therapeutics, Inc. (NASDAQ:ADGI) was downgraded to “Hold” from “Buy” by Jefferies analyst Michael Yee in December, with a price target of $10, down from $46. According to the analyst, the company’s lead antibiotic, namely ADG20, has reduced effectiveness against the omicron variant of COVID-19, implying that the next stages and development plans are questionable.
Overall, 12 hedge funds monitored by Insider Monkey were bullish on Adagio Therapeutics, Inc. (NASDAQ:ADGI) in the third quarter. The stakes of these funds are valued at $613 million.
Along with Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Inc. (NASDAQ:BIIB), and Thermo Fisher Scientific Inc. (NYSE:TMO), Adagio Therapeutics, Inc. (NASDAQ:ADGI) is one of the notable stocks from the portfolio of Samuel Isaly’s OrbiMed Advisors.
9. Edgewise Therapeutics, Inc. (NASDAQ:EWTX)
OrbiMed Advisors Stake Value: $231,482,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.54%
Number of Hedge Fund Holders: 14
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is a biopharmaceutical company focusing on the discovery, development, and commercialization of novel medicines for severe, uncommon muscular illnesses with unmet medical needs. For the fiscal third quarter of 2021, Edgewise Therapeutics, Inc. (NASDAQ:EWTX) reported a loss per share of $0.26, falling short of estimates by $0.04.
Among the hedge funds being tracked by Insider Monkey, OrbiMed Advisors is the leading shareholder of Edgewise Therapeutics, Inc. (NASDAQ:EWTX), with 13.94 million shares worth more than $231.48 million.
As of Q3 2021, 14 hedge funds have positions in Edgewise Therapeutics, Inc. (NASDAQ:EWTX), as compared to 15 funds in the previous quarter.
8. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
OrbiMed Advisors Stake Value: $242,933,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.66%
Number of Hedge Fund Holders: 46
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is a clinical-stage oncology firm focused on discovering new therapeutics. Analyst Evan Seigerman of BMO Capital commenced coverage of Mirati Therapeutics, Inc. (NASDAQ:MRTX) in November and rated it as “Outperform”, with a price target of $187.
Mirati Therapeutics, Inc. (NASDAQ:MRTX), in November, posted earnings for the third quarter. The company’s loss per share came in at $1.55, beating estimates by $1.47. In addition, revenue over the period gained 529.8% compared to the prior-year quarter, reaching $71.8 million, outperforming estimates by $70.39 million.
Mirati Therapeutics, Inc. (NASDAQ:MRTX) was in 46 hedge funds’ portfolios at the end of the third quarter of 2021. Comparatively, there were 55 hedge funds in our database with Mirati Therapeutics, Inc. holdings at the end of the previous quarter.
In its third-quarter 2021 investor letter, Baron Funds mentioned Mirati Therapeutics, Inc. (NASDAQ:MRTX). Here is what the fund said:
“We initiated a position in Mirati Therapeutics, Inc., a clinical-stage biotechnology company developing novel therapeutics targeting the genetic and immunologic drivers of cancer. The company’s lead drug, known as Adagrasib, targets a protein called KRAS that is a central node in driving tumor growth. We think Adagrasib has a best-in-class profile in a multibillion-dollar drug category. Currently, Amgen has a competing drug on the market, but clinical data on Adagrasib presented at the recent European Society of Medical Oncology meeting gives us confidence that Mirati’s drug has better attributes including residence time on target, efficacy response rates, longer duration of treatment, combinability opportunities, and blood brain barrier penetration.”
7. Boston Scientific Corporation (NYSE:BSX)
OrbiMed Advisors Stake Value: $253,120,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.78%
Number of Hedge Fund Holders: 47
Boston Scientific Corporation (NYSE:BSX) is a company that develops, manufactures, and markets medical devices for use in interventional medicine. In December, Truist analyst David Rescott boosted his price target on Boston Scientific Corporation (NYSE:BSX) to $53 from $52 and kept a “Buy” rating on the stock.
Farallon Capital is the biggest stakeholder of Boston Scientific Corporation (NYSE:BSX) as of the third quarter of 2021, increasing its stake in the company by 11%, holding 14 million shares worth almost $607.57 million.
Boston Scientific Corporation (NYSE:BSX) saw a decrease in hedge fund sentiment in Q3 2021. The number of long hedge fund positions declined to 47 at the end of the third quarter, compared to 51 positions in the previous quarter.
In its second-quarter 2021 investor letter, Artisan Partners mentioned Boston Scientific Corporation (NYSE:BSX). Here is what the fund said:
“Among our top contributors (includes) Boston Scientific. Shares of Boston Scientific were volatile throughout most of 2020 as the pandemic drove significant drops in elective medical procedures, though our longer-term constructive view and belief elective medical procedures would bounce back post pandemic prompted us to add to our position. We have been rewarded with shares rebounding this year alongside a recovery in elective medical procedures. Longer-term, we believe the company’s investments in higher growth categories will drive revenue growth to the higher end of its peer group with rising margins.”
6. Ikena Oncology, Inc. (NASDAQ:IKNA)
OrbiMed Advisors Stake Value: $255,945,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.81%
Number of Hedge Fund Holders: 8
Ikena Oncology, Inc. (NASDAQ:IKNA) is a clinical-stage biotechnology business focused on finding and developing patient-directed, biomarker-driven cancer medicines. In December, H.C. Wainwright analyst Robert Burns initiated coverage of Ikena Oncology, Inc. (NASDAQ:IKNA), rating the stock as “Buy” and assigning a price target of $25 to the shares.
OrbiMed Advisors started building its position in Ikena Oncology, Inc. (NASDAQ:IKNA) in the first quarter of 2021 and holds 11.90 million shares in the company, valued at $255.95 million as of Q3 2021. The stock represents 2.81% of the hedge fund’s 13F portfolio. OrbiMed Advisors is the most significant stakeholder of Ikena Oncology, Inc. (NASDAQ:IKNA).
Overall, 8 hedge funds monitored by Insider Monkey were bullish on Ikena Oncology, Inc. (NASDAQ:IKNA) in the third quarter. The stakes of these funds are valued at $208.82 million.
Just like Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Inc. (NASDAQ:BIIB), and Thermo Fisher Scientific Inc. (NYSE:TMO), Ikena Oncology, Inc. (NASDAQ:IKNA) is one of the notable stocks to consider as per Samuel Isaly’s OrbiMed Advisors’ 13F portfolio in Q3.
5. Bristol-Myers Squibb Company (NYSE:BMY)
OrbiMed Advisors Stake Value: $267,176,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.93%
Number of Hedge Fund Holders: 74
Bristol-Myers Squibb Company (NYSE:BMY) is a pharmaceutical company that specializes in chemically manufactured drugs and biologics. Bristol-Myers Squibb Company (NYSE:BMY) issued a quarterly dividend of $0.54 per share in December, up 10.2% from the previous payout of $0.49.
As of the end of the third quarter, legendary investor and billionaire Warren Buffett’s Berkshire Hathaway is the largest shareholder in Bristol-Myers Squibb Company (NYSE:BMY) out of the 867 hedge funds tracked by Insider Monkey. Buffett’s fund holds 22.05 million shares worth $1.30 billion in the corporation.
In December, Goldman Sachs analyst Chris Shibutani initiated coverage of Bristol-Myers Squibb Company (NYSE:BMY), rating the stock as “Buy” and setting a price target of $72. The number of hedge funds tracked by Insider Monkey having stakes in Bristol-Myers Squibb Company (NYSE:BMY) grew to 74 in Q3, up from 73 in the preceding quarter.
In its fourth-quarter 2020 investor letter, Wedgewood Partners highlighted a few stocks, and Bristol Myers Squibb Co (NYSE:BMY) is one of them. Here is what the fund said:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
4. Merck & Co., Inc. (NYSE:MRK)
OrbiMed Advisors Stake Value: $280,341,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 3.08%
Number of Hedge Fund Holders: 77
Merck & Co., Inc. (NYSE:MRK) is a multinational pharmaceutical corporation that develops, manufactures, and distributes medications for humans and animals. In December, Goldman Sachs analyst Chris Shibutani initiated coverage of Merck & Co., Inc. (NYSE:MRK), rating the stock as “Buy” and initiating a price target of $93.
The hedge fund of Samuel Isaly entered the third quarter of 2021 with 3.73 million shares of Merck & Co., Inc. (NYSE:MRK), worth around $280.34 million. The company has featured on Isaly’s portfolio since the fourth quarter of 2010.
Of the 77 hedge funds that were bullish on Merck & Co., Inc. (NYSE:MRK) according to the third quarter database of Insider Monkey, Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, holding 10.63 million shares worth $798.67 million.
In its third-quarter 2021 investor letter, Miller Howard Investments mentioned Merck & Co., Inc. (NYSE:MRK). Here is what the fund said:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) Merck (MRK). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
3. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)
OrbiMed Advisors Stake Value: $285,938,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 3.14%
Number of Hedge Fund Holders: 60
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is a biopharmaceutical business specializing in rare and rheumatic illness research, development, and commercialization. In December, Wells Fargo analyst Derek Archila initiated coverage of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), rating the stock as “Overweight” and keeping a price target of $137.
According to the 13F filings for the third quarter of 2021, OrbiMed Advisors holds 2.61 million shares of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), amounting to more than $285.94 million, representing 3.14% of the fund’s portfolio value. The hedge fund reduced its stake in the company by 11% in the third quarter of 2021.
Overall, hedge funds are loading up on Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), as 60 out of the 867 funds tracked by Insider Monkey held stakes in the biopharmaceutical company in the third quarter, compared to 56 funds a quarter earlier.
Carillon Tower Advisers, an investment management firm, in its first-quarter 2021 investor letter, mentioned Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). Here is what the fund said:
“Horizon Therapeutics is a biopharmaceutical company whose primary focus is research, development, and marketing of late-stage pharmaceutical products. After experiencing some unfortunate manufacturing hiccups in the later stages of 2020 for its key product Tepezza, which is used in the treatment of thyroid eye disease, the company recently received positive news that should relieve their supply issues going forward. With manufacturing of Tepezza back online after being forced to halt due to Operation Warp Speed’s COVID-19 vaccine production orders, Horizon expects patient treatments to resume in mid-April.”
2. Prelude Therapeutics Incorporated (NASDAQ:PRLD)
OrbiMed Advisors Stake Value: $313,740,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 3.44%
Number of Hedge Fund Holders: 7
Prelude Therapeutics Incorporated (NASDAQ:PRLD) is a biopharmaceutical business in the United States. Baker Bros. Advisors, with approximately 10.12 million shares worth $316.37 million, is the largest shareholder of Prelude Therapeutics Incorporated (NASDAQ:PRLD) as of Q3 2021.
Prelude Therapeutics Incorporated (NASDAQ:PRLD)’s price objective was trimmed to $20 from $33 in November by Barclays analyst Peter Lawson, who maintained an “Overweight” rating on the stock. In anticipation of more information on the company’s management changes, the analyst decreased the price target.
At the end of the third quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $851.40 million in Prelude Therapeutics Incorporated (NASDAQ:PRLD), up from 6 funds in the preceding quarter, holding stakes in the company worth $866.87 million.
1. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)
OrbiMed Advisors Stake Value: $382,436,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 4.2%
Number of Hedge Fund Holders: 21
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is a clinical-stage biopharmaceutical company focused on acquiring, developing, and commercializing pharmaceuticals using a precision medicine strategy. OrbiMed Advisors holds 6.03 million shares in SpringWorks Therapeutics, Inc. (NASDAQ:SWTX), worth over $382.44 million, representing 4.2% of its Q3 portfolio. The hedge fund decreased its stake in the company by 1% in the third quarter of 2021.
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) and AbbVie Inc. (NYSE:ABBV) signed a clinical trial partnership agreement in December to investigate Nirogacestat in patients with relapsed or refractory multiple myeloma.
In the third quarter, fund managers added to their SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) holdings. 21 hedge funds in our database held stakes in SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) at the end of the third quarter, compared to 18 funds in the second quarter.
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Disclosure: None. Top 10 Stock Picks of Samuel Isaly’s OrbiMed Advisors is originally published on Insider Monkey.
