5 Healthcare Stocks to Buy Today According to Steven Cohen’s Point72 Asset Management

1. Biogen Inc. (NASDAQ:BIIB)

Point72 Asset Management’s Holdings: $146 million

Percentage of Point72 Asset Management’s Portfolio: 0.58%

Number of Hedge Fund Holders: 64

Biogen Inc. (NASDAQ:BIIB) is a healthcare company that develops and sells treatments for neurological and neurodegenerative diseases. These diseases include muscular atrophy, Alzheimer’s disease, multiple sclerosis, lymphomas, leukemia, arthritis, dementia, and more.

For its fiscal Q4, Biogen Inc. (NASDAQ:BIIB) earned $2.7 billion in revenue and $3.39 in non-GAAP EPS, beating analyst estimates for both. The company shared key details for its new Alzheimer’s treatment in March 2022, which prompted RBC Capital to raise its price target to $248 from $227, stating that there is strong demand for its Alzheimer’s products in the medical community.

Point72 Asset Management’s stake in Biogen Inc. (NASDAQ:BIIB) was worth $146 million at the end of the fourth quarter of last year, as the firm owned 611,500 shares. 64 funds owned a stake in the company at the end of 2021, with Biogen Inc. (NASDAQ:BIIB)’s largest investor among that group being Jim Simons’ Renaissance Technologies, which owns 1.07 million shares worth $257 million.

Longleaf Partners Fund mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:

“Biogen (83%, 2.43%; 5%, 0.10%), a biotechnology company specializing in therapies for the treatment of neurological diseases, was a strong contributor before we exited the position in the first half. We began acquiring shares in January 2021, paying between 9- 11x FCF and a discount to our appraisal, even if the company’s promising drug pipeline turned out to be worth 0. After Biogen’s Alzheimer drug Aduhelm was approved in June, we quickly sold out after the stock’s price appreciated over 70% and briefly exceeded our appraisal of the value. We re-initiated a position in Biogen in December at a price below our original cost basis from January. The stock became very cheap once again after Aduhelm’s early sales disappointed due to its high initial cost before management correctly cut the price. We think Biogen’s core Multiple sclerosis (MS) and Biosimilars businesses are strong enough to create sustainable double-digit EPS growth, even if Aduhelm and the entire Alzheimer’s program is worth zero. We also expect a board led by large shareholders to continue the company’s accretive repurchase, while considering other beneficial corporate actions.”

Disclosure: None. You can also take a look at 10 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins and 12 Best Large-cap Biotech Stocks To Buy Now.

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