15 Biotech Stocks to Buy Now According to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital

Published on September 29, 2021 at 8:47 am by Swati Goyal in Hedge Funds, News

In this article, we will discuss 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital. If you want to skip our detailed analysis of Akkaraju and Dybbs’ history, investment philosophy, and hedge fund performance, go directly to 5 Biotech Stocks to Buy Now According to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital.

Dr. Srinivas Akkaraju is the Founder and Managing General Partner of Samsara BioCapital. Akkaraju received his M.D. and Ph.D. in Immunology from Stanford University. Akkaraju worked as the Managing Director of New Leaf Venture Partners for four years. He also served as Managing Director at Panorama Capital, LLC, a private equity firm.

Michael Dybbs, who is a Partner at Samsara, currently serves on the board of several companies, including Enara Bio, IONpath, Levo Therapeutics, Nkarta Therapeutics and Sutro (STRO).

As of the second quarter of 2021, Samsara BioCapital holds significant stakes in several companies including BioNTech SE (NASDAQ:BNTX), Novavax (NASDAQ:NVAX), and Allakos Inc. (NASDAQ:ALLK).

Samsara BioCapital owns 5,758 shares of BioNTech SE (NASDAQ:BNTX). On September 15, The FDA granted BioNTech SE (NASDAQ:BNTX) Orphan Drug Designation for a melanoma therapy that targets patients in stages IIB through IV of the illness. On August 27, UBS analyst Eliana Merle raised the price target on BioNTech SE (NASDAQ:BNTX) to $300 from $111 but kept a “Neutral” rating on the shares.

Samsara BioCapital owns 30,160 shares of Novavax, Inc. (NASDAQ:NVAX), worth over $6.40 million. On September 8, Novavax (NASDAQ:NVAX) enrolled the first individuals in a Phase 1/2 trial to evaluate the safety and immunogenicity of a combination vaccination combining its seasonal influenza and COVID-19 vaccines. In June Cantor Fitzgerald analyst Charles Duncan raised the price target on Novavax (NASDAQ:NVAX) to $272 from $217 and maintained an “Overweight” rating on the shares.

Samsara BioCapital holds 146,259 shares in Allakos Inc. (NASDAQ:ALLK) worth over $12.49 million, representing 1.54% of their investment portfolio. On August 26, Morgan Stanley analyst Michael Ulz initiated coverage of Allakos Inc. (NASDAQ:ALLK) with an “Equal Weight” rating and gave a price target of $88.

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Why should we pay attention to Samsara’s stock picks? 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 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital. We used Akkaraju and Dybbs’ 13F portfolio for the second quarter for this analysis.

Biotech Stocks to Buy Now According to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital

15. Elevation Oncology, Inc. (NASDAQ:ELEV)

Akkaraju and Dybbs’ Stake Value: $12,650,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 1.56%

Number of Hedge Fund Holders: 18

Elevation Oncology, Inc. (NASDAQ:ELEV), a clinical-stage biopharmaceutical business based in the United States, focuses on developing medicines for cancer therapy in genomically specified patient groups. It was founded in 2019 and ranks fifteenth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital. Elevation Oncology, Inc. (NASDAQ:ELEV) presently has a market capitalization of $229.93 million.

On August 12, Elevation Oncology, Inc. (NASDAQ:ELEV) declared earnings for the second quarter of 2021. It reported earnings per share of -$4.84, missing the estimates by $4.41. On July 20, Wedbush analyst Robert Driscoll initiated coverage of Elevation Oncology, Inc. (NASDAQ:ELEV) with an “Outperform” rating and gave a price target of $27.

Elevation Oncology, Inc. (NASDAQ:ELEV) is the latest addition in Srini Akkaraju and Michael Dybbs’ hedge fund portfolio, as Samsara BioCapital bought 932,239 shares of the company, worth $12.65 million. Driehaus Capital, with 2 million shares worth $26.46 million, is the biggest stakeholder in the company.

In addition to BioNTech SE (NASDAQ:BNTX), Novavax (NASDAQ:NVAX), and Allakos Inc. (NASDAQ:ALLK), analysts are paying attention to Elevation Oncology, Inc. (NASDAQ:ELEV) amid the company’s long-term growth potential.

14. Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT)

Akkaraju and Dybbs’ Stake Value: $12,795,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 1.57%

Number of Hedge Fund Holders: 13

Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) is a biopharmaceutical firm that focuses on the research and marketing of medicines to treat progressive non-viral liver disorders. It was incorporated in 2002 and stands fourteenth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital. Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) shares currently has a $500.67 million market capitalization.

On September 13, Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) announced that it issued 3.25% Convertible Senior Notes due April 2023, and 2.00% Convertible Senior Notes due 2026. The principal amount of which is $306.5 million and $114.7 million respectively. The net proceeds will be used for general corporate purposes. On August 20, Goldman Sachs analyst Salveen Richter downgraded Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) to “Sell” from “Neutral” with a price target of $10, down from $17, implying a 30% downside. While Ocaliva is authorized for primary biliary cholangitis, Richter informs investors in a research note that recent label revisions with contraindications pressure the commercial possibility.

Samsara BioCapital holds 640,688 shares in Samsara BioCapital worth $12.80 million, representing 1.57% of their investment portfolio. Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 13 in the second quarter of 2021, compared to 15 positions in the previous quarter.

13. IVERIC bio, Inc. (NASDAQ:ISEE)

Akkaraju and Dybbs’ Stake Value: $13,411,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 1.65%

Number of Hedge Fund Holders: 26

IVERIC bio, Inc. (NASDAQ:ISEE) is a biopharmaceutical business focused on developing new treatments for ocular illnesses, particularly age-related and orphan hereditary retinal diseases. It was founded in 2007 and ranks thirteenth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital.

On September 10, Stifel analyst Annabel Samimy initiated coverage of IVERIC bio, Inc. (NASDAQ:ISEE) with a “Buy” rating and gave a price target of $22. On August 4, IVERIC bio, Inc. (NASDAQ:ISEE) declared earnings for the second quarter of 2021. It posted earnings per share of -$0.32, missing the estimates by $0.06.

Samsara BioCapital holds more than 2.13 million shares in IVERIC bio, Inc. (NASDAQ:ISEE), worth over $13.41 million, representing 1.65% of their portfolio. The hedge fund has trimmed its stake in the firm by 11% in the second quarter of 2021. Kurt Von Emster’s VenBio Select Advisor is a leading shareholder in IVERIC bio, Inc. (NASDAQ:ISEE), with 6.43 million shares worth more than $40.54 million.

In addition to BioNTech SE (NASDAQ:BNTX), Novavax (NASDAQ:NVAX), and Allakos Inc. (NASDAQ:ALLK), analysts are paying attention to IVERIC bio, Inc. (NASDAQ:ISEE).

12. Aclaris Therapeutics, Inc. (NASDAQ:ACRS)

Akkaraju and Dybbs’ Stake Value: $13,946,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 1.72%

Number of Hedge Fund Holders: 37

Aclaris Therapeutics, Inc. (NASDAQ:ACRS) is a clinical-stage biopharmaceutical business focused on discovering new small molecule therapeutics to treat patients with immuno-inflammatory disorders. It was established in 2012 and is placed twelfth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital. Aclaris Therapeutics, Inc. (NASDAQ:ACRS) shares have gained about 587.40% over the last 12 months.

On August 5, Aclaris Therapeutics, Inc. (NASDAQ:ACRS) reported second-quarter 2021 earnings. It reported earnings per share of -$0.34, missing the expectations by $0.06. Revenue over the period was $1.82 million, down 11.2% year over year, surpassing the predictions by $0.07 million. On July 23, Jefferies analyst Roger Song initiated coverage of Aclaris Therapeutics, Inc. (NASDAQ:ACRS) with a “Buy” rating and setting the price target at $32, up from $27.

Samsara BioCapital holds 794,171 shares in Aclaris Therapeutics, Inc. (NASDAQ:ACRS), worth $13.95 million, representing 1.72% of their portfolio. The company is also getting the attention of the smart money, as 37 hedge funds tracked by Insider Monkey reported owning stakes in Aclaris Therapeutics, Inc. (NASDAQ:ACRS) in the second quarter of 2021, up from 30 funds a quarter earlier.

In addition to BioNTech SE (NASDAQ:BNTX), Novavax (NASDAQ:NVAX), and Allakos Inc. (NASDAQ:ALLK), analysts are paying attention to Aclaris Therapeutics, Inc. (NASDAQ:ACRS) amid the company’s long-term growth potential.

11. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)

Akkaraju and Dybbs’ Stake Value: $13,998,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 1.72%

Number of Hedge Fund Holders: 18

SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) buys, develops, and commercializes medications for patients with rare illnesses and cancer who are underserved. It was founded in 2017 and is ranked eleventh on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital.

On September 8, JPMorgan analyst Anupam Rama raised the price target on SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) to $105 from $97 and maintained an “Overweight” rating on the shares. On August 30, SpringWorks Therapeutics (NASDAQ:SWTX) partnered with Dana-Farber Cancer Institute to study nirogacestat, an experimental gamma secretase inhibitor (GSI), in combination with anti-BCMA medicines in a range of preclinical multiple myeloma models.

Samsara BioCapital holds 169,852 shares in SpringWorks Therapeutics (NASDAQ:SWTX) worth $14 million, representing 1.72% of their portfolio. SpringWorks Therapeutics (NASDAQ:SWTX) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 18 in the second quarter compared to 22 positions in the previous quarter.

10. Janux Therapeutics, Inc. (NASDAQ:JANX)

Akkaraju and Dybbs’ Stake Value: $15,168,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 1.87%

Number of Hedge Fund Holders: 14

Janux Therapeutics, Inc. (NASDAQ:JANX) is a biopharmaceutical business that develops therapeutics for cancer patients using its unique Tumor Activated T Cell Engager platform technology. It was founded in 2017 and is ranked tenth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital.

On August 10, Janux Therapeutics, Inc. (NASDAQ:JANX) announced earnings for the second quarter of 2021. It posted earnings per share of $0.62, below the estimates by $0.48. On July 6, BofA analyst Geoff Meacham initiated coverage of Janux Therapeutics, Inc. (NASDAQ:JANX) with a “Buy” rating and setting the price target at $35.

The stock is a new arrival on Srini Akkaraju and Michael Dybbs’ portfolio, as their hedge fund bought about 607,949 shares of Janux Therapeutics, Inc. (NASDAQ:JANX), worth $15.17 million. In addition, Peter Kolchinsky’s RA Capital Management is a leading shareholder in Janux Therapeutics, Inc. (NASDAQ:JANX), with 8.67 million shares worth more than $216.33 million.

9. Rain Therapeutics Inc. (NASDAQ:RAIN)

Akkaraju and Dybbs’ Stake Value: $25,444,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 3.14%

Number of Hedge Fund Holders: 12

Rain Therapeutics Inc. (NASDAQ:RAIN), a clinical-stage precision oncology business based in the United States, develops medicines that target oncogenic drivers. It was founded in 2017 and is placed ninth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital. Rain Therapeutics Inc. (NASDAQ:RAIN) currently has a market capitalization of $431.94 million.

On September 14, Goldman Sachs analyst Corinne Jenkins downgraded Rain Therapeutics Inc. (NASDAQ:RAIN) to “Neutral” from “Buy” and gave a price target of $22. The analyst is optimistic about milademetan’s clinical prospects in liposarcoma, but says it is still unclear if Rain will be able to effectively develop the drug for broader applications such MDM2-amplified tumors or GATA3-mutant breast cancer. On August 10, Rain Therapeutics Inc. (NASDAQ:RAIN) reported second-quarter 2021 earnings. It reported earnings per share of –$0.39, beating the expectations by $0.15.

Samsara BioCapital holds 1.64 million shares in Rain Therapeutics Inc. (NASDAQ:RAIN), worth $25.44 million, representing 3.14% of their portfolio. Rain Therapeutics Inc. (NASDAQ:RAIN) is the latest addition to Srini Akkaraju and Michael Dybbs’ portfolio. Bihua Chen’s Cormorant Asset Management is the most significant stakeholder in the company, with 2.63 million shares worth $39.73 million.

In addition to BioNTech SE (NASDAQ:BNTX), Novavax (NASDAQ:NVAX), and Allakos Inc. (NASDAQ:ALLK), analysts are paying attention to Rain Therapeutics Inc. (NASDAQ:RAIN) amid the company’s long-term growth potential.

8. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)

Akkaraju and Dybbs’ Stake Value: $28,309,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 3.49%

Number of Hedge Fund Holders: 15

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a biopharmaceutical firm. The company uses automation and artificial intelligence to undertake parallel experiments in experimental biology for cellular disease models. It was founded in 2013 and ranks eighth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital.

On August 13, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) posted earnings for the second quarter of 2021. It declared earnings per share of -$0.31, missing analysts’ expectations by $0.08. Revenue over the period was $2.55 million, up 1242.1% YoY, missing the estimates by $0.18 million. In June, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) announced a multi-year partnership with Mila, the Quebec Artificial Intelligence Institute, to help the company advance its machine learning skills.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is the latest addition in Srini Akkaraju and Michael Dybbs’ hedge fund portfolio, as Samsara BioCapital bought 775,583 shares worth $28.31 million. This represents 3.49% of their portfolio.

Baron Discovery Fund, in its second-quarter 2021 investor letter, mentioned Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX). Here is what the fund said:

“Recursion Pharmaceuticals, Inc. is a biotechnology company engaged in technology-enabled drug discovery. The company uses automated wet-lab infrastructure (actual biologic experimentation) with cell perturbations (multiple experiments done on the duplicate cells), and image capture to generate data at large scale. It also operates its own supercomputer (the “BioHive”) to drive “in-silico” (virtual, software-enabled) inferences based on its data and wet-lab experiments. This combined approach has generated a strong pipeline of programs spanning early discovery to clinical trials, including a collaboration deal with Bayer. The company’s use of artificial intelligence and machine learning lowers the cost of drug discovery and speeds up time to market, and we believe this paradigm is in the early innings of disrupting the entire biopharmaceutical industry. Since Recursion’s program pipeline is still relatively early stage, we have started with a small investment.”

7. Sutro Biopharma, Inc. (NASDAQ:STRO)

Akkaraju and Dybbs’ Stake Value: $31,149,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 3.84%

Number of Hedge Fund Holders: 26

Sutro Biopharma, Inc. (NASDAQ:STRO) is a drug research, development, and manufacturing business. It was founded in 2003 and stands seventh on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital.

On August 18, Sutro Biopharma, Inc. (NASDAQ:STRO) received Fast Track designation from the FDA for STRO-002 in the treatment of fallopian tube, platinum-resistant epithelial ovarian, or primary peritoneal cancer in patients who have had one to three lines of systemic therapy previously. On June 18, Wainwright analyst Andrew Fein initiated coverage of Sutro Biopharma, Inc. (NASDAQ:STRO) with a “Buy” rating and gave a price target of $35.

Samsara BioCapital holds 1.68 million shares in Sutro Biopharma, Inc. (NASDAQ:STRO), worth $31.15 million, representing 3.84% of their investment portfolio. Sutro Biopharma, Inc. (NASDAQ:STRO) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 26 in the second quarter of 2021, compared to 28 positions in the previous quarter.

In addition to BioNTech SE (NASDAQ:BNTX), Novavax (NASDAQ:NVAX), and Allakos Inc. (NASDAQ:ALLK), analysts are paying attention to Sutro Biopharma, Inc. (NASDAQ:STRO).

6. Centessa Pharmaceuticals Limited (NASDAQ:CNTA)

Akkaraju and Dybbs’ Stake Value: $34,149,000

Percentage of Srini Akkaraju and Michael Dybbs’ 13F Portfolio: 4.21%

Number of Hedge Fund Holders: 16

Centessa Pharmaceuticals Limited (NASDAQ:CNTA) is a next-generation biopharmaceutical firm aiming to reinvent the medication development process. It was founded in 2020 and ranks sixth on the list of 15 biotech stocks to buy now according to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital. Centessa Pharmaceuticals Limited (NASDAQ:CNTA) presently has a market capitalization of $1.89 billion.

On September 9, Centessa Pharmaceuticals Limited (NASDAQ:CNTA) announced good top-line findings from a phase 2a SerpinPC trial in patients with severe haemophilia A and B. On June 22, Jefferies analyst Eun Yang initiated coverage of Centessa Pharmaceuticals Limited (NASDAQ:CNTA) with a “Buy” rating and gave a price target of $35.

Centessa Pharmaceuticals Limited (NASDAQ:CNTA) is the latest addition in Srini Akkaraju and Michael Dybbs’ hedge fund portfolio, as Samsara BioCapital bought 1.54 million shares of the company, worth $34.15 million. Samsara BioCapital is the biggest stakeholder in Centessa Pharmaceuticals Limited (NASDAQ:CNTA). There were 16 hedge funds in our database that held stakes in Centessa Pharmaceuticals Limited (NASDAQ:CNTA) in the second quarter of 2021.

Click to continue reading and see 5 Biotech Stocks to Buy Now According to Srini Akkaraju and Michael Dybbs’ Samsara BioCapital.