In this article, we will discuss 5 biotech and pharmaceutical stocks to buy according to Palo Alto Investors based on Q2 holdings of the fund. If you want to read our detailed analysis of Palo Alto Investors’ history, investment philosophy, and hedge fund performance, go directly to the 10 Biotech and Pharmaceutical Stocks to Buy According to Palo Alto Investors.
5. Biogen Inc. (NASDAQ:BIIB)
Palo Alto Investors’ Stake Value: $125,211,000
Percent of 13F Portfolio: 6.9%
Number of Hedge Fund Holders: 67
Biogen Inc. (NASDAQ:BIIB) is a biotechnology firm based in the United States specializing in researching, developing, and distributing medicines to treat neurological disorders. It was incorporated in 1978 and is ranked fifth on the list of 15 biotech and pharmaceutical stocks to buy according to Palo Alto Investors. Biogen Inc. (NASDAQ:BIIB) presently has a market capitalization of $43.47 billion.
The hedge fund chaired by Joon Yun holds 361,600 shares in Biogen Inc. (NASDAQ:BIIB) worth over $125.21 million. Overall, hedge fund sentiment increased for Biogen Inc. (NASDAQ:BIIB). The number of hedge fund positions raised to 67 at the end of the second quarter compared to 63 positions in the prior quarter.
In its second-quarter 2021 investor letter Miller, Value Partners mentioned Biogen Inc. (NASDAQ:BIIB). Here is what the fund said:
“We started building a position in Biogen (BIIB) following the approval in early June of Aduhelm, their controversial Alzheimer’s drug. The stock initially traded up to an intra-day high of $468.55 and subsequently traded down to a low of $340.27 near the end of June. We believe the significant unmet need will lead to higher than expected demand for the drug.”
4. Insmed Incorporated (NASDAQ:INSM)
PAI’s Stake Value: $171,304,000
Percent of 13F Portfolio: 9.44%
Number of Hedge Fund Holders: 22
Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical organization. Patients with severe and uncommon diseases benefit from the company’s research and development.
Palo Alto Investors manages 6.02 million shares in Insmed Incorporated (NASDAQ:INSM), worth over $171.30 million, representing 9.44% of their portfolio. The hedge fund has increased stakes in the firm by 4% in the second quarter of 2021. Palo Alto Investors is the most significant stakeholder of Insmed Incorporated (NASDAQ:INSM).
3. Abiomed, Inc. (NASDAQ:ABMD)
PAI’s Stake Value: $182,251,000
Percent of 13F Portfolio: 10.04%
Number of Hedge Fund Holders: 24
Abiomed, Inc. (NASDAQ:ABMD) is engaged in the research, development, and sale of external and implantable circulatory support devices.
On August 18, Impella expandable percutaneous cardiac pump from Abiomed, Inc. (NASDAQ:ABMD) received breakthrough device characterization from the US Food and Drug Administration. On August 6, Deutsche Bank analyst Pito Chickering raised his price target on Abiomed, Inc. (NASDAQ:ABMD) to $410 from $360 and maintained a “Buy” rating on the shares.
2. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
PAI’s Stake Value: $184,649,000
Percent of 13F Portfolio: 10.17%
Number of Hedge Fund Holders: 44
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is an American biotechnology firm based in San Rafael, California.
On September 9, Stifel analyst Paul Matteis upgraded BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to “Buy” from “Hold” and raised his price target to $96, up from $86.
ClearBridge Investments, in its first-quarter 2021 investor letter, mentioned BioMarin Pharmaceutical Inc. (NASDAQ:BMRN). Here is what the fund said:
“The Strategy closed out of five positions (including BioMarin). We sold BioMarin Pharmaceutical after a number of its clinical catalysts had played out.”
1. STAAR Surgical Company (NASDAQ:STAA)
PAI’s Stake Value: $193,341,000
Percent of 13F Portfolio: 10.65%
Number of Hedge Fund Holders: 26
STAAR Surgical Company (NASDAQ:STAA) designs, develops, produces, markets, and distributes implanted lenses for the eye. The company was incorporated in 1982 and is placed first on the list of 15 biotech and pharmaceutical stocks to buy according to Palo Alto Investors. STAAR Surgical Company (NASDAQ:STAA) has a market capitalization of $6.98 billion and was able to deliver a 158.71% return in the past 12 months.
On July 8, Oppenheimer analyst Steven Lichtman initiated coverage of STAAR Surgical Company (NASDAQ:STAA) with a “Perform” rating and gave his price target of $150.
Palo Alto Investors currently holds 1.27 million shares of STAAR Surgical Company (NASDAQ:STAA) that amount to $193.34 million. The company occupies 10.65% of Palo Alto Investors’ total portfolio.
You can also take a peek at 11 Best Pharma and Biotech Stocks to Buy and 10 Best Biotech Penny Stocks To Buy
