5 Best Biotech Stocks to Invest In

Below are the 5 best biotech stocks to invest in according to the billionaire biotech hedge fund manager Joe Edelman. For a comprehensive review, see 10 Best Biotech Stocks to Invest In.

5. Global Blood Therapeutics, Inc. (NASDAQ: GBT)

A clinical-stage biopharmaceutical company Global Blood Therapeutics, Inc. (NASDAQ: GBT) is the long-running investment of a billionaire hedge fund manager. The firm first initiated a stake in Global Blood Therapeutics in 2015. It is the fifth-largest stock holding of the Perceptive Advisors portfolio, accounting for 4.60% of the overall portfolio. The investment is valued at $319 million.

Shares of Global Blood Therapeutics underperformed this year compared to the broader market index. Lower than expected revenues from Oxbryta added to investors’ concerns. The company missed the third-quarter revenue estimate by $7.66 million. The market analysts believe share performance is likely to remain under pressure until Oxbryta sales reach the pre-Covid level.

4. Iovance Biotherapeutics, Inc. (IOVA)

The small-cap clinical-stage biotechnology company Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) is also among the long-running investments of billionaire biotech hedge fund manager Joseph Edelman. IOVA is the fourth largest stock holding of the Perceptive Advisors portfolio, accounting for 4.78% of the overall portfolio.

The hedge fund manager has slashed its stake in Iovance Biotherapeutics by 14% in the latest quarter to capitalize on share price gains. Share of Iovance soared 65% in 2020, extending the five years gains to 500%. Iovance Biotherapeutics focuses on developing and commercializing cancer immunotherapy products to harness the power of a patient’s immune system to eradicate cancer cells.

3. Amicus Therapeutics, Inc. (FOLD)

The small-cap biotechnology company Amicus Therapeutics, Inc. (NASDAQ: FOLD) has been a member of Joseph Edelman’s portfolio since 2014. The hedge fund has benefitted strongly from its investment in Amicus Therapeutics. This is because Amicus shares jumped 150% in the last twelve months.    

Amicus is the third-largest stock holding of the veteran hedge fund manager, accounting for 5.10% of the overall portfolio. Amicus has generated third-quarter revenue of $67.44 million, up 38.3% year over year, and topped the consensus estimate by $2.56M.

John F. Crowley, Chairman and Chief Executive Officer of Amicus Therapeutics, Inc., stated, “During the third quarter, we made tremendous progress advancing our mission for patients and are on track to achieve our 2020 key strategic priorities, including our global Fabry commercial launch, Pompe late-stage development program, and advancing our industry-leading gene therapy pipeline.”

2. Travere Therapeutics, Inc. (TVTX)

A biopharmaceutical company Travere Therapeutics, Inc. (NASDAQ: TVTX) first initiated a position in the first quarter of this year. It is the second-largest stock holding of billionaire biotech hedge fund, accounting for 5.67% of the overall portfolio. The hedge fund’s investment in biopharmaceutical company looks profitable considering a share price gain of 80% in the last twelve months.

“Eric Dube, Ph.D., chief executive officer of Retrophin said: “The DUPLEX Study of sparsentan in FSGS is nearing completion of enrollment and the PROTECT Study in IgA nephropathy achieved enrollment of the 280th patient during the quarter, positioning us for topline readouts from the proteinuria endpoints in both pivotal studies next year.”

1. Mirati Therapeutics, Inc. (NASDAQ: MRTX)

A clinical-stage oncology company Mirati Therapeutics, Inc. (NASDAQ: MRTX) is the largest stock holding of Perceptive Advisors, accounting for 8.21% of the overall portfolio. It is a long-running investment of a billionaire biotech hedge fund. The firm first initiated a stake in Mirati during the fourth quarter of 2017.

The hedge fund continues showing confidence in a clinical-stage oncology company as Joseph Edelman has raised its stake by 23% in the latest quarter.  The shares of Mirati Therapeutics rallied 100% this year, extending the five years gains to 630%. The company has recently raised more than $800 million through the public offering of common stock.

Please also see 10 Best Large-Cap Stocks To Buy According to Ray Dalio and 15 Best Long-Term Stocks To Buy Now.

Disclosure: None.