In this article, we will look at 10 pharmaceutical stocks to buy now according to billionaire Kerr Neilson. If you want to skip reading about Kerr Neilson’s investment philosophy and Platinum Asset Management’s past performance, you can go directly to 5 Pharmaceutical Stocks to Buy Now According to Billionaire Kerr Neilson.
Kerr Neilson is an Australian billionaire investor and hedge fund manager of Platinum Asset Management. Mr. Neilson was born in 1950 and bought his first stock at the age of 13, signaling his knack for finance. He earned a bachelor’s degree in Commerce from the University of Cape Town in 1973, after which he started his career in investment management.
Platinum Asset Management
Mr. Neilson founded Platinum Asset Management in 1994 with an initial investment from legendary hedge fund manager George Soros. The firm targeted international equities and followed a long-term value investing strategy. Kerr Neilson has been dubbed the “Australian Warren Buffett” because of his investment philosophy of initiating long positions in high-value stocks. As of December 31, 2022, Kerr Neilson manages more than $3.59 billion in 13F securities through his hedge fund, Platinum Asset Management.
Platinum Asset Management’s Performance
Platinum Asset Management doesn’t experience frequent losses. The fund lost 13.5% in 2011 and its maximum drawdown was 30.5% in 2008. The fund’s annualized returns since inception as of March 31 2022 stand at 11.4%, vs 7.6% for the benchmark world index.
Platinum Asset Management has a top 10 holdings concentration of 57.98%. Some of the most notable holdings of the fund include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG). However, for this article, we will be looking at the top 10 pharmaceutical stocks to buy according to Kerr Neilson’s hedge fund.
Kerr Neilson of Platinum Asset Management
Our Methodology
To determine 10 pharmaceutical stocks to buy now according to billionaire Kerr Neilson, we went through Platinum Asset Management’s fourth-quarter 2021 investment portfolio.
10 Pharmaceutical Stocks to Buy Now According to Billionaire Kerr Neilson
10. Epizyme, Inc. (NASDAQ:EPZM)
Stake Value of Platinum Asset Management: $7,057,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.19%
Number of Hedge Fund Holders: 22
Epizyme, Inc. (NASDAQ:EPZM) is a commercial-stage biopharmaceutical company that discovers, develops, and commercializes novel epigenetic medicines for patients with cancer and other diseases in the United States. This March, the company reported fourth-quarter 2021 revenues of $11.58 million, up 38.29% year over year from $8.38 million.
On March 2, 2022, H.C. Wainwright analyst Andrew Fein lowered his price target on Epizyme, Inc. (NASDAQ:EPZM) to $10 from $15 but maintained a Buy rating on the shares. The analyst commented that the company’s recent pipeline modifications will drive upside for the stock.
Epizyme, Inc. (NASDAQ:EPZM) is one of the top pharmaceutical stocks to buy according to billionaire Kerr Neilson. As of December 31, 2021, his hedge fund’s stakes in the company were valued at $7.05 million which covers 0.19% of Platinum Asset Management’s investment portfolio.
At the end of the fourth quarter of 2021, 22 hedge funds were long Epizyme, Inc. (NASDAQ:EPZM), up from 10 positions in the prior quarter. The total stakes of these funds amounted to $45.57 million.
Like Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG), legendary value investor Kerr Neilson is bullish on Epizyme, Inc. (NASDAQ:EPZM).
9. Syneos Health, Inc. (NASDAQ:SYNH)
Stake Value of Platinum Asset Management: $7,331,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.20%
Number of Hedge Fund Holders: 29
Syneos Health, Inc. (NASDAQ:SYNH) operates as a biopharmaceutical outsourcing solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. It operates through two segments: Clinical Solutions and Commercial Solutions.
On February 17, 2022, Syneos Health, Inc. (NASDAQ:SYNH) reported quarterly earnings for the fiscal fourth quarter of 2021 in which the company beat EPS estimates. The company reported earnings per share of $1.48, beating estimates by $0.05. The company’s revenue for the quarter amounted to $1.37 billion, up 20.47% year over year from $1.14 billion. As of April 13, 2022, the stock has gained 2.14% over the past twelve months.
This April, Deutsche Bank analyst Justin Bowers initiated coverage of Syneos Health, Inc. (NASDAQ:SYNH) with a Buy rating and a $102 price target. The analyst and investor sentiment for the stock is positive.
At the close of the fourth quarter of 2021, Syneos Health, Inc. (NASDAQ:SYNH) was a part of 29 hedge fund portfolios. The total stakes of these funds in the company came to $589.92 million, up from $474.70 million in the preceding quarter with 33 positions.
8. Albireo Pharma, Inc. (NASDAQ:ALBO)
Stake Value of Platinum Asset Management: $7,352,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.20%
Number of Hedge Fund Holders: 15
Albireo Pharma, Inc. (NASDAQ:ALBO) operates as a commercial-stage biopharmaceutical company, focusing on the development and commercialization of novel bile acid modulators to treat orphan pediatric liver diseases and other liver or gastrointestinal diseases and disorders. On February 22, the company announced that the National Institute for Health and Care Excellence has issued guidance that recommends Bylvay for the treatment of all types of progressive familial intrahepatic cholestasis in people aged six months and older. Bylvay is a potent, non-systemic ileal bile acid transport inhibitor, administered as a once-daily treatment.
This March, Wedbush analyst Andreas Argyrides assumed coverage of Albireo Pharma, Inc. (NASDAQ:ALBO) with an Outperform rating and a $75 price target. Moreover, the analyst added the stock to Wedbush’s Best Ideas List.
Platinum Asset Management’s stakes in the company amounted to $7.35 million at the close of Q4 2021, up 29% from the fund’s Q3 2021 stakes. The investment covers 0.20% of Kerr Neilson’s hedge fund portfolio.
By the end of the fourth quarter of 2021, 15 hedge funds were bullish on Albireo Pharma, Inc. (NASDAQ:ALBO). The total stakes of these hedge funds amounted to $99.99 million. This is compared to 13 hedge funds in the preceding quarter with stakes worth $143.4 million.
Platinum Asset Management has a significant stake in Albireo Pharma, Inc. (NASDAQ:ALBO). Other notable stocks held by the hedge fund include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG).
7. Zai Lab Limited (NASDAQ:ZLAB)
Stake Value of Platinum Asset Management: $8,836,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.24%
Number of Hedge Fund Holders: 32
Zai Lab Limited (NASDAQ:ZLAB) develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. This March, the company reported revenues for the fourth quarter of 2021 which came to $44.17 million, and annual revenues of more than $144 million for the fiscal year 2021.
Last December, Citi analyst Yigal Nochomovitz raised his price target on Zai Lab Limited (NASDAQ:ZLAB) to $231 from $217 and maintained a Buy rating on the shares. The analyst was reportedly bullish on the stock following the company’s news on Zejula, a treatment for damaged DNA in both healthy cells and cancer cells.
Zai Lab Limited (NASDAQ:ZLAB) is one of the best pharmaceutical stocks to buy according to billionaire Kerr Neilson. According to Insider Monkey’s data, Platinum Asset Management upped its previous stakes by 269% in the company at the close of Q4 2021, bringing its stakes to $8.83 million. The investment accounts for 0.24% of Mr. Neilson’s 13F portfolio.
According to Insider Monkey’s database, 32 hedge funds were long Zai Lab Limited (NASDAQ:ZLAB) by the close of Q4 2021. The collective stakes of these funds were valued at $590.48 million.
ClearBridge Investments, an investment management firm, mentioned Zai Lab Limited (NASDAQ:ZLAB) in its third-quarter 2021 investor letter. Here is what the firm had to say:
“Biotechnology company Zai Lab is now our only holding in China. The government wants to grow the domestic health care space as part of its social mission, so although Zai is not a big position, we still believe it is a growth story with immense optionality. The stock was hurt in the quarter by negative sentiment spreading into more areas of the Chinese market.”
6. Esperion Therapeutics (NASDAQ:ESPR)
Stake Value of Platinum Asset Management: $13,566,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 20
Esperion Therapeutics (NASDAQ:ESPR) is a pharmaceutical company that develops medicines for the treatment of patients with elevated low-density lipoprotein cholesterol. The company’s flagship products are NEXLETOL and NEXLIZET, both of which treat patients with cardiovascular disease.
This February, Esperion Therapeutics (NASDAQ:ESPR) announced earnings for the fiscal fourth quarter of 2021 in which it beat revenue estimates. The company reported quarterly revenues of $15.40 million, up 59.79% year over year, and outperformed market consensus by $0.92 million. As of April 13, 2022, the company’s year-to-date returns are up 11.75%.
On March 10, 2022, H.C. Wainwright analyst Emanuela Branchetti initiated coverage of Esperion Therapeutics (NASDAQ:ESPR) with a Buy rating and a $22 price target. The analyst is bullish on the stock and sees the company as well-positioned to improve its products’ commercial performance.
Esperion Therapeutics (NASDAQ:ESPR) was spotted on 20 hedge fund portfolios at the close of the fourth quarter of 2021. These funds held stakes worth $92.06 million in the company. This is compared to 17 hedge funds in the preceding quarter with stakes worth $48.84 million. The hedge fund sentiment for Esperion Therapeutics (NASDAQ:ESPR) is positive.
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Disclosure: None. 10 Pharmaceutical Stocks to Buy Now According to Billionaire Kerr Neilson is originally published on Insider Monkey.
