In this article, we discuss 5 biotech stocks to buy according to Chinese billionaire Lei Zhang. If you want our detailed analysis of these stocks, go directly to 10 Biotech Stocks To Buy According To Chinese Billionaire Lei Zhang.
5. Cytek Biosciences, Inc. (NASDAQ:CTKB)
Hillhouse Capital Management’s Stake Value: $187,488,000
Percentage of Hillhouse Capital Management’s 13F Portfolio: 2.45%
Number of Hedge Fund Holders: 13
Cytek Biosciences, Inc. (NASDAQ:CTKB) is a biotech company specializing in cell analysis to develop treatments for cancer, in addition to cell biology research. Chinese billionaire Lei Zhang acquired a position in Cytek Biosciences, Inc. (NASDAQ:CTKB) in the third quarter, buying 8.75 million shares of the company, worth $187.4 million. The stock accounts for 2.45% of the billionaire’s investments for Q3.
A total of 13 hedge funds were long Cytek Biosciences, Inc. (NASDAQ:CTKB) at the end of September, with stakes valued at $524.5 million. Peter Kolchinsky’s RA Capital Management is the biggest Cytek Biosciences, Inc. (NASDAQ:CTKB) stakeholder, holding 9.60 million shares worth $205.6 million.
On November 8, Cytek Biosciences, Inc. (NASDAQ:CTKB) announced earnings for the third quarter, posting an EPS of $0.01, missing estimates by $0.01. Revenue over the period equaled $34.38 million, exceeding estimates by $1 million.
Cowen transferred coverage of Cytek Biosciences, Inc. (NASDAQ:CTKB) on October 14 to analyst Max Masucci, who maintained an Outperform rating on the name.
4. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Hillhouse Capital Management’s Stake Value: $251,318,000
Percentage of Hillhouse Capital Management’s 13F Portfolio: 3.28%
Number of Hedge Fund Holders: 28
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a biotech company working on the development of unique drugs primarily for cardiovascular disease, genetic diseases, and cancer. Lei Zhang’s Hillhouse Capital Management owns 5.36 million BridgeBio Pharma, Inc. (NASDAQ:BBIO) shares, worth $251.3 million, representing 3.28% of the firm’s Q3 portfolio.
Among the hedge funds being tracked by Insider Monkey, 28 funds were bullish on BridgeBio Pharma, Inc. (NASDAQ:BBIO) in the third quarter, with stakes worth $2.1 billion. Andreas Halvorsen’s Viking Global is the biggest BridgeBio Pharma, Inc. (NASDAQ:BBIO) stakeholder, with 26.6 million shares amounting to $1.24 billion.
H.C. Wainwright analyst Raghuram Selvaraju on December 28 lowered the price target on BridgeBio Pharma, Inc. (NASDAQ:BBIO) to $24 from $88 as a result of one of the company’s drug trials failing, though he kept a Buy rating on the shares.
Publishing its Q3 results on November 4, BridgeBio Pharma, Inc. (NASDAQ:BBIO) announced a loss per share of $1.06, missing estimates by $0.15. The revenue dropped 71.16% year-over-year, missing analysts’ consensus estimates.
Here is what Baron Opportunity Fund has to say about BridgeBio Pharma, Inc. (NASDAQ:BBIO) in their Q2 2021 investor letter:
“BridgeBio Pharma, Inc. is a biotechnology company developing drugs that address a host of genetic disorders. Shares fell in the quarter given concerns around increasing competition. While we expect positive results from BridgeBio’s Phase 3 trial for its lead program for TTR amyloidosis, a disease in which toxic proteins build up in the heart and nerves, encouraging updates from Alnylam’s competing drug, Vitrusiran, and more recently, Intellia’s gene editing platform, pressured the stock. We exited our position.”
3. I-Mab (NASDAQ:IMAB)
Hillhouse Capital Management’s Stake Value: $520,685,000
Percentage of Hillhouse Capital Management’s 13F Portfolio: 6.80%
Number of Hedge Fund Holders: 18
I-Mab (NASDAQ:IMAB) is one of the top biotech stocks to buy according to billionaire Lei Zhang, with his hedge fund boosting its position in the company by 9% in Q3, holding a $520.6 million position. I-Mab (NASDAQ:IMAB) is a Chinese biotech company working on the development of therapies for immuno-oncology and autoimmune diseases.
I-Mab (NASDAQ:IMAB) announced on October 26 a partnership with Sinopharm Group Co., Ltd. (OTC:SHTDY) to improve its commercial capabilities and accelerate its commercialization transformation.
According to the Q3 database of 867 elite hedge funds monitored by Insider Monkey, 18 funds reported owning stakes in I-Mab (NASDAQ:IMAB), worth $837.7 million. One of the leading I-Mab (NASDAQ:IMAB) stakeholders is Adage Capital Management, with the hedge fund elevating its position in the company by 46% as of September 2021, holding a $86.9 million stake.
2. Legend Biotech Corporation (NASDAQ:LEGN)
Hillhouse Capital Management’s Stake Value: $558,937,000
Percentage of Hillhouse Capital Management’s 13F Portfolio: 7.38%
Number of Hedge Fund Holders: 14
Another top biotech stock pick of Lei Zhang is Legend Biotech Corporation (NASDAQ:LEGN), with the billionaire increasing his stake in the company by 1601% in the third quarter, acquiring a total of more than 11 million shares in Legend Biotech Corporation (NASDAQ:LEGN), worth $558.9 million. The stock accounts for 7.38% of Zhang’s total Q3 investments. Legend Biotech Corporation (NASDAQ:LEGN) is a company engaged in developing treatment for cancer and other chronic diseases using advanced cell therapy.
Piper Sandler analyst Edward Tenthoff on December 21 initiated coverage of Legend Biotech Corporation (NASDAQ:LEGN) with an Overweight rating and a $66 price target. The analyst is confident about the FDA approval of the company’s upcoming drugs for multiple myeloma.
In the third quarter of 2021, 14 hedge funds were bullish on Legend Biotech Corporation (NASDAQ:LEGN), down from 19 funds in the preceding quarter. Baker Bros. Advisors is one of the leading stakeholders of the company, with a $119.5 million position.
1. BeiGene, Ltd. (NASDAQ:BGNE)
Hillhouse Capital Management’s Stake Value: $1,986,430,000
Percentage of Hillhouse Capital Management’s 13F Portfolio: 25.98%
Number of Hedge Fund Holders: 16
BeiGene, Ltd. (NASDAQ:BGNE) is the largest holding in billionaire Lei Zhang’s Q3 portfolio. Zhang’s Hillhouse Capital Management owns 5.4 million shares of BeiGene, Ltd. (NASDAQ:BGNE), a biotech company specializing in the development of drugs for cancer, worth $1.98 billion, representing 25.98% of the firm’s total investments.
On October 12, Bernstein analyst Liang Rebecca initiated coverage of BeiGene, Ltd. (NASDAQ:BGNE) with an Outperform rating and a $431 price target. The analyst covered the China biotech and pharma sector “with a positive stance based on the global opportunity.”
Billionaire Ray Dalio’s Bridgewater Associates is one of the largest BeiGene, Ltd. (NASDAQ:BGNE) stakeholders as of Q3 2021, with the hedge fund elevating its stake in the company by 105%, holding 175,923 shares worth $63.8 million. Overall, 16 funds were long BeiGene, Ltd. (NASDAQ:BGNE) in the third quarter.
You can also take a look at 10 Healthcare Dividend Stocks with Over 3% Yield and Jim Cramer’s Most Favorite Tech Stocks to Buy Now.
