5 Best Performing Biotech Stocks in 2022

In this article, we discuss 5 best performing biotech stocks in 2022. If you want to see more stocks in this selection, check out 12 Best Performing Biotech Stocks in 2022. 

5. Verona Pharma plc (NASDAQ:VRNA)

Number of Hedge Fund Holders: 20

YTD Share Price Gain as of December 28: 242.39%

Verona Pharma plc (NASDAQ:VRNA) is a London-based clinical stage biopharmaceutical company, focused on development and commercialization of therapies for the treatment of respiratory diseases with unmet medical needs. The stock rose 26% on December 20 when Verona Pharma plc (NASDAQ:VRNA) reported that a phase 3 trial evaluating a nebulized form of its inhibitor ensifentrine for the treatment of chronic obstructive pulmonary disease reached its core and secondary goals. Verona Pharma plc (NASDAQ:VRNA) shares have skyrocketed over 242% year-to-date as of December 28, making it one of the best performing biotech plays this year. 

On December 21, Truist analyst Joon Lee raised the price target on Verona Pharma plc (NASDAQ:VRNA) from $20 to $28 and maintained a Buy rating on the shares after the company’s “positive” phase 3 trial data evaluating nebulized ensifentrine for the treatment of chronic obstructive pulmonary disease.

According to Insider Monkey’s data, 20 hedge funds were long Verona Pharma plc (NASDAQ:VRNA) at the end of Q3 2022, compared to 11 funds in the last quarter. Samuel Isaly’s OrbiMed Advisors is a prominent position holder in the company, with 5.7 million shares worth $58.20 million. 

4. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)

Number of Hedge Fund Holders: 23

YTD Share Price Gain as of December 28: 189.41%

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a Pennsylvania-based clinical-stage biopharmaceutical company focused on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic, and liver diseases. The shares climbed nearly 190% year-to-date as of December 28, which merits Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s inclusion in our list of the best performing biotech stocks in 2022. 

On December 20, Canaccord analyst Edward Nash raised the price target on Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) to $270 from $151 and maintained a Buy rating on the shares. The analyst lifted his target based on the positive data reported from the pivotal trial of resmetirom in NASH. He updated his model and increased his target as Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) stated that it is on track to file an NDA with the FDA as early in the first half of 2023 as possible.

According to Insider Monkey’s Q3 data, 23 hedge funds were long Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), compared to 18 funds in the last quarter. 

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

Number of Hedge Fund Holders: 25

YTD Share Price Gain as of December 28: 170.99%

Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a California-based biopharmaceutical company engaged in the discovery, development, and commercialization of novel therapeutics and diagnostics products for the treatment of inflammatory bowel diseases. On December 7, the stock jumped meaningfully when Prometheus Biosciences, Inc. (NASDAQ:RXDX) announced that its medicine PRA023 showed strong efficacy and favorable safety in two mid-stage trials in patients with ulcerative colitis and Crohn’s disease. Year-to-date as of December 28, Prometheus Biosciences, Inc. (NASDAQ:RXDX) shares have surged 171%, making it one of the best biotech stocks in 2022. 

On December 8, Credit Suisse analyst Tiago Fauth raised the firm’s price target on Prometheus Biosciences, Inc. (NASDAQ:RXDX) to $142 from $59 and maintained an Outperform rating on the shares following ulcerative colitis and Crohn’s disease data.

According to Insider Monkey’s data, 25 hedge funds were long Prometheus Biosciences, Inc. (NASDAQ:RXDX) at the end of Q3 2022, compared to 20 funds in the prior quarter. Bihua Chen’s Cormorant Asset Management is the largest stakeholder of the company, with approximately 2 million shares worth $116.8 million. 

2. Belite Bio, Inc (NASDAQ:BLTE)

Number of Hedge Fund Holders: N/A

YTD Share Price Gain as of December 28: 180.93%

Belite Bio, Inc (NASDAQ:BLTE) is a California-based clinical-stage biopharmaceutical drug development company, engaged in the research and development of novel therapeutics targeting atrophic age-related macular degeneration and autosomal recessive stargardt diseases. On November 18, Belite Bio, Inc (NASDAQ:BLTE) announced that, following discussions with the FDA, it has finalized the study design for its planned Phase 3 clinical trial to evaluate the efficacy and safety of Tinlarebant in patients with geographic atrophy associated with Dry AMD.

Belite Bio, Inc (NASDAQ:BLTE) shares have gained nearly 181% year-to-date as of December 28, making it one of the best performing biotech stocks this year.

1. Akero Therapeutics, Inc. (NASDAQ:AKRO)

Number of Hedge Fund Holders: 27

YTD Share Price Gain as of December 28: 129.12%

Akero Therapeutics, Inc. (NASDAQ:AKRO) is a California-based cardio-metabolic nonalcoholic steatohepatitis (NASH) company, which develops medicines to restore metabolic balance and improve overall health. On December 8, the FDA granted breakthrough therapy designation to Akero Therapeutics, Inc. (NASDAQ:AKRO)’s efruxifermin to treat nonalcoholic steatohepatitis (NASH). It is one of the best performing biotech stocks this year, with shares up 129% year-to-date as of December 28. 

On November 7, H.C. Wainwright analyst Ed Arce raised the price target on Akero Therapeutics, Inc. (NASDAQ:AKRO) to $64 from $62 and maintained a Buy rating on the shares following the Q3 results.

According to Insider Monkey’s data, 27 hedge funds were bullish on Akero Therapeutics, Inc. (NASDAQ:AKRO) at the end of Q3 2022, compared to 19 funds in the last quarter. David Witzke and Michael Gregory’s Avidity Partners Management held a significant position in the company, comprising 3.12 million shares worth $106.30 million. 

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