In this article, we take a look at the 10 pharmaceutical stocks to buy according to Timothy Lynch’s Stonepine Capital. If you want to skip our detailed analysis of Stonepine Capital’s history, investment philosophy, and hedge fund preference, go directly to 5 Pharmaceutical Stocks to Buy According to Timothy Lynch’s Stonepine Capital.
Timothy Lynch is one of the two managing members of Stonepine Capital, a hedge fund company based in Oregon. Lynch has about 12 years of experience in Stonepine Capital and altogether more than 24 years of experience in dealing with life science industry operations. He graduated from Harvard Business School and Colgate University. Before Stonepine capital, Timothy Lynch worked at Goldman Sachs & Co., Chase Manhattan Bank, Elan Corporation, InterMune, Inc., and Tercica, Inc.
As of the second quarter of 2021, Stonepine Capital owns stakes in many prominent companies such as Amryt Pharma plc (NASDAQ: AMYT), CTI BioPharma Corp. (NASDAQ: CTIC), and Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS).
In Amryt Pharma plc (NASDAQ: AMYT), Stonepine Capital owns over 2.7 million shares. The investment covers 17.74% of the fund’s portfolio. Interestingly, Stonepine Capital has increased its stake in the company by 11% since the end of the previous quarter.
Another notable stock in Timothy Lynch’s portfolio is CTI BioPharma Corp. (NASDAQ: CTIC). The fund holds a $19.08 million stake in the company. Moreover, Stonepine Capital has increased its stake in CTI BioPharma Corp. (NASDAQ: CTIC) by 132% since the previous quarter.
Based on the latest 13F holdings for the second quarter of 2021, Stonepine Capital owns over 2.6 million shares in Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS) worth more than $14 million.
Why do we care about hedge fund activity? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Keeping all these points in mind, let’s start our list of the 10 pharmaceutical stocks to buy according to Timothy Lynch’s Stonepine Capital. We used Lynch’s 13F portfolio as of the second quarter of the year 2021 for this analysis.
Pharmaceutical Stocks to Buy According to Timothy Lynch’s Stonepine Capital
10. Angion Biomedica Corp. (NASDAQ:ANGN)
Stonepine Capital’s Stake Value: $2.901 million
Percentage of Stonepine Capital’s 13F Portfolio: 1.51%
Number of Hedge Fund Holders: 9
A biopharmaceutical company, Angion Biomedica Corp. (NASDAQ: ANGN) discovers, develops, and commercially offers small molecule therapeutics to people who suffer from acute organ injuries and fibrotic diseases.
The hedge fund chaired by Timothy Lynch holds 222,836 shares in Angion Biomedica Corp. (NASDAQ: ANGN) currently worth over $2 million which represents 1.51% of their portfolio. In addition, Stonepine Capital increased stakes in the firm by 66% during the second quarter of 2021. Mark Lampert’s Biotechnology Value Fund / BVF Inc. is a leading shareholder in Angion Biomedica Corp. (NASDAQ: ANGN), with over 1 million shares that are worth more than $13 million.
9. IVERIC bio, Inc. (NASDAQ:ISEE)
Stonepine Capital’s Stake Value: $3.265 million
Percentage of Stonepine Capital’s 13F Portfolio: 1.7%
Number of Hedge Fund Holders: 26
IVERIC bio, Inc. (NASDAQ: ISEE) is a biopharmaceutical company that discovers and develops effective treatments for diseases that affect the retina in the eye. The company prides itself on being innovative and unique as the treatments for retinal diseases constitute an unmet need in the US healthcare industry.
Timothy Lynch’s Stonepine Capital holds 517,445 shares in IVERIC bio, Inc. (NASDAQ: ISEE) worth over $3 million, representing 1.7% of its portfolio. Kurt Von Emster’s VenBio Select Advisor holds the most shares of IVERIC bio, Inc. (NASDAQ: ISEE), with over 6 million shares worth more than $40 million.
8. KalVista Pharmaceuticals, Inc. (NASDAQ:KALV)
Stonepine Capital’s Stake Value: $4.792 million
Percentage of Stonepine Capital’s 13F Portfolio: 2.5%
Number of Hedge Fund Holders: 22
KalVista Pharmaceuticals, Inc. (NASDAQ: KALV) specializes in the creation of medications that specifically work against Hereditary Angioedema (HAE) and Diabetic Macular Edema (DME). The medications comprise new generation inhibitors in the form of small molecule protease. The company was founded in 2004 and is headquartered in Massachusetts, United States.
Timothy Lynch’s Stonepine Capital holds 200,000 shares in KalVista Pharmaceuticals, Inc. (NASDAQ: KALV), worth over $4 million, representing 2.5% of their portfolio. 19 funds tracked by Insider Monkey held stakes in the company by the end of the second quarter of 2021. Based on our calculations, KalVista Pharmaceuticals, Inc. (NASDAQ: KALV) ranks eighth in our list of the 10 pharmaceutical stocks to buy according to Timothy Lynch’s Stonepine Capital.
7. XOMA Corporation (NASDAQ:XOMA)
Stonepine Capital’s Stake Value: $5.611 million
Percentage of Stonepine Capital’s 13F Portfolio: 2.93%
Number of Hedge Fund Holders: 4
Founded by Patrick J. Scannon in 1981, XOMA Corporation (NASDAQ: XOMA) is headquartered in Emeryville, California. 4 funds tracked by Insider Monkey held stakes in the company at the end of the second quarter of 2021. XOMA Corporation (NASDAQ: XOMA) ranks seventh on the list of 10 pharmaceutical stocks to buy according to Timothy Lynch’s Stonepine Capital.
On May 3, XOMA Corporation (NASDAQ: XOMA) announced that it acquired a milestone payment from Janssen Biotech of $0.5 million. The payment was due to the first patient being given a dosage of Janssen Biotech’s drug that was in the third phase of clinical trials. After Jansson Biotech receives marketing approvals, XOMA Corporation (NASDAQ: XOMA) would potentially be given several additional milestone payments.
Mark Lampert’s Biotechnology Value Fund / BVF Inc owns more than 3.5 million shares of XOMA Corporation (NASDAQ: XOMA), worth over $120 million, and is, therefore, the biggest shareholder of the company. Stonepine Capital currently owns 156,041 shares in the company, which amounts to a worth of $5.611 million.
Like Amryt Pharma plc (NASDAQ: AMYT), CTI BioPharma Corp. (NASDAQ: CTIC), and Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS), XOMA Corporation (NASDAQ: XOMA) is a notable pharmaceutical company that has a significant position in Stonepine Capital portfolio.
6. Affimed N.V. (NASDAQ:AFMD)
Stonepine Capital’s Stake Value: $7.225 million
Percentage of Stonepine Capital’s 13F Portfolio: 3.77%
Number of Hedge Fund Holders: 25
A clinical-stage biopharmaceutical company, Affimed N.V. (NASDAQ: AFMD) works to innovate, discover, and develop immunotherapies for the treatment of cancer. The company was founded in 2000, is headquartered in Germany, and has a market capitalization of $682.472 million. Affimed N.V. (NASDAQ: AFMD) is ranked sixth on our list of 10 pharmaceutical stocks to buy according to Timothy Lynch’s Stonepine Capital.
The hedge fund managed by Timothy Lynch holds a total of 850,000 shares in Affimed N.V. (NASDAQ: AFMD) that are worth over $7 million. The hedge fund sentiment of Affimed N.V. (NASDAQ: AFMD) has increased as 25 funds tracked by Insider Monkey held stakes in the company after the end of the second quarter of 2021 as opposed to 23 by the end of the first quarter.
Like Amryt Pharma plc (NASDAQ: AMYT), CTI BioPharma Corp. (NASDAQ: CTIC), and Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS), Affimed N.V. (NASDAQ: AFMD) is a notable pharmaceutical company.
Click to continue reading and see 5 Pharmaceutical Stocks to Buy According to Timothy Lynch’s Stonepine Capital.
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Disclosure: None. 10 Pharmaceutical Stocks to Buy According to Timothy Lynch’s Stonepine Capital is originally published on Insider Monkey.
