5 Best Mid-Cap Healthcare Stocks To Buy Now

2. Prometheus Biosciences, Inc. (NASDAQ:RXDX)

Number of Hedge Fund Holders: 47

Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a biotechnology company that is currently in the clinical stage of development. The company is focused on identifying, creating, and selling innovative treatments for a range of inflammatory bowel diseases, Crohn’s disease, ulcerative colitis, and systemic sclerosis-associated interstitial lung disease. 

On April 17, Credit Suisse analyst Tiago Fauth lowered Prometheus Biosciences, Inc. (NASDAQ:RXDX)’s rating from Outperform to Neutral and has set a price target of $200 following Merck’s announcement of its acquisition of the company for $10.8 billion in cash, or $200 per share.

According to Insider Monkey’s fourth quarter database, 47 hedge funds were bullish on Prometheus Biosciences, Inc. (NASDAQ:RXDX), up from 25 funds in the prior quarter. Steve Cohen’s 72 Investment Holdings is the biggest position holder in the company, with 1.8 million shares worth $203.2 million. 

Alger Small Cap Focus Fund made the following comment about Prometheus Biosciences, Inc. (NASDAQ:RXDX) in its Q4 2022 investor letter:

“Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a biotechnology company focused on developing precision-based medicines to treat autoimmune conditions, primarily those afflicting the intestines such as inflammatory bowel disease (IBD) indications like ulcerative colitis and Crohn’s disease by leveraging a proprietary bioinformatics database. Shares outperformed during the period as the company reported positive Phase 2 clinical trial results from its (BD study, as the drug demonstrated significant patient improvement that was well above expectations. We believe Prometheus is an example of a company with “great discovery value”, as they could potentially be the leader and first-in-class precision-based drug to treat autoimmune diseases.”