In this piece, we will take a look at the 5 biotech and pharma stocks to buy according to billionaire Steve Cohen. If you want to check out more stocks and learn about Mr. Cohen, then head over to 10 Biotech and Pharma Stocks to Buy According to Billionaire Steve Cohen.
5. Seagen Inc. (NASDAQ:SGEN)
Point72 Asset Management’s Holdings: $137 million
Percentage of Point72 Asset Management’s Portfolio: 0.6%
Number of Hedge Fund Holders: 40
Seagen Inc. (NASDAQ:SGEN) is a cancer treatment provider headquartered in the United States. Its treatments cover different cancers such as those of the breast, the urinary tract, and the cervix.
By Q3 2021 end, Mr. Cohen’s Point72 Asset Management owned 812,081 Seagen Inc. (NASDAQ:SGEN) shares which were worth $137 million and represented 0.6% of the firm’s portfolio. 40 of the 867 hedge funds polled by Insider Monkey held Seagen Inc. (NASDAQ:SGEN) shares as Q3 2021 ended.
For its third fiscal quarter, Seagen Inc. (NASDAQ:SGEN) brought in $424 million in revenue and -$1.61 in GAAP EPS, beating analyst estimates for revenue. Piper Sandler raised the company’s price target to $165 in an October 2021 analyst note, highlighting that while the company posted strong earnings, there is limited visibility into its future.
4. Thermo Fisher Scientific Inc. (NYSE:TMO)
Point72 Asset Management’s Holdings: $144 million
Percentage of Point72 Asset Management’s Portfolio: 0.63%
Number of Hedge Fund Holders: 94
Thermo Fisher Scientific Inc. (NYSE:TMO) is a diagnostics and research equipment provider headquartered in the United States. Its products aid in the development of vaccines and the diagnosis of diseases.
By Q3 2021 end, Mr. Cohen’s investment firm held 252,961 Thermo Fisher Scientific Inc. (NYSE:TMO) shares worth $144 million and making up 0.63% of its portfolio. During the same time period, 94 of the 867 hedge funds polled by Insider Monkey had holdings in the company.
Thermo Fisher Scientific Inc. (NYSE:TMO) earned $9.3 billion in revenue and $5.76 in non-GAAP EPS for its third quarter, making Wall Street happy by beating estimates for both. In an October 2021 analyst note, SVB Leerink increased the company’s price target to $685, stating that a strong quarter and optimistic guidance are strong points for the equipment provider.
Thermo Fisher Scientific Inc. (NYSE:TMO)’s largest shareholder is Ken Fisher’s Fisher Asset Management who owns two million shares worth a whopping $1.1 billion.
In its Q3 2021 investor letter, L1 Capital mentioned Thermo Fisher Scientific Inc. (NYSE:TMO) and outlined that:
“Included in these adjustments, in early July 2021, we divested our remaining small investment in Thermo Fisher Scientific (Thermo Fisher), the world leader in the provision of equipment, consumables, and services to the Life Sciences industry. Thermo Fisher has benefited from elevated demand for its products and services associated with COVID-19 and we sold our residual investment at a gain of more than 70% compared to our average investment cost. Thermo Fisher subsequently held an Investor Day and positively surprised many people, including us, with very strong medium-term growth targets, notwithstanding a headwind from normalisation of COVID-19-related business. Thermo Fisher is a high-quality business and remains on our ‘Bench’ for potential reinvestment.”
3. AstraZeneca PLC (NASDAQ:AZN)
Point72 Asset Management’s Holdings: $146 million
Percentage of Point72 Asset Management’s Portfolio: 0.64%
Number of Hedge Fund Holders: 41
AstraZeneca PLC (NASDAQ:AZN) is a British medicine manufacturer that targets several sectors such as cancer, heart, respiratory and neuroscience diseases. It also sells a COVID-19 vaccine.
AstraZeneca PLC (NASDAQ:AZN) earned $9.8 billion in revenue and $1.08 in GAAP EPS in its third quarter, beating analyst estimates for both. In a November 2021 analyst note, Bryan Garnier set the company’s price target to GBp 10,500 and downgraded it to Buy.
Point72 Asset Management owned 2.4 million AstraZeneca PLC (NASDAQ:AZN) shares by the end of Q3 2021. These were worth $146 million and represented 0.64% of its portfolio. Additionally, by Q3 2021 end, 41 of the 867 hedge funds polled by Insider Monkey had holdings in the company.
AstraZeneca PLC (NASDAQ:AZN)’s biggest shareholder is Ken Fisher’s Fisher Asset Management who owns 19 million shares worth $1.1 billion.
2. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Point72 Asset Management’s Holdings: $170 million
Percentage of Point72 Asset Management’s Portfolio: 0.74%
Number of Hedge Fund Holders: 28
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) focuses exclusively on using genetic research to develop disease treatments. Its products cover genetic mutations and muscular diseases. It is headquartered in Cambridge, Massachusetts.
Mr. Cohen’s investment firm owned 1.8 million Sarepta Therapeutics, Inc. (NASDAQ:SRPT) shares worth $170 million by the end of the third quarter of this year. These made up 0.74% of its portfolio. During the same time period, 28 of the 867 hedge funds polled by Insider Monkey had holdings in the company.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) earned $189 million in revenue and -$0.19 in non-GAAP EPS for its third quarter, beating estimates for both. In a November 2021 analyst note, JPMorgan increased the company’s price target to $130, sharing optimism for its treatments.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s largest shareholder is Kurt Von Emster’s VenBio Select Advisor who owns 2.5 million shares worth $231 million.
In its Q1 2021 investor letter, Artisan Partners mentioned Sarepta Therapeutics, Inc. (NASDAQ:SRPT). It stated that:
“We ended our campaign in Sarepta Therapeutics. Sarepta Therapeutics is a leader in Duchenne muscular dystrophy (DMD) drug development. Shares were pressured during the quarter amid a disappointing clinical trial outcome for its DMD gene therapy. We believe the odds of FDA approval for this therapy are lower and the timeline longer. Fortunately, we controlled for this risk by keeping this holding in the GardenSM. While Sarepta’s pipeline of gene therapies for neuromuscular disorders remains attractive, we exited our position given this setback. We believe CropSM holding Catalent is a better risk-adjusted way to participate in these opportunities. Catalent is a leader in gene therapy manufacturing and one of Sarepta’s key partners.”
1. Merck & Co., Inc. (NYSE:MRK)
Point72 Asset Management’s Holdings: $179 million
Percentage of Point72 Asset Management’s Portfolio: 0.78%
Number of Hedge Fund Holders: 77
Merck & Co., Inc. (NYSE:MRK) is a pharmaceutical company that provides medicines for humans and animals. Its products target diseases such as cancer, heart problems and diabetes.
Point72 Asset Management held 2.3 million Merck & Co., Inc. (NYSE:MRK) shares as Q3 2021 came to an end. These were worth $179 million and constituted 0.78% of its portfolio. During the same time period, 77 of the 867 hedge funds polled by Insider Monkey had holdings in the company.
Merck & Co., Inc. (NYSE:MRK) brought in $13 billion in revenue and $1.75 in non-GAAP EPS for its third quarter, beating analyst estimates for both. In a November 2021 analyst note, Truist raised the company’s price target to $95, as part of its broader forecast upgrades for the pharmaceutical sector.
Merck & Co., Inc. (NYSE:MRK)’s largest shareholder is Ken Fisher’s Fisher Asset Management who owns 10 million shares worth $798 million.
Merck & Co., Inc. (NYSE:MRK) was mentioned by Artisan Partners in its Q1 2021 investor letter, which outlined that:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
You can also take a peek at the 10 Best Stocks Under $200 According to Edgar Wachenheim’s Greenhaven Associates and 10 Best REIT Dividend Stocks According to Hedge Funds.
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