In this article, we will take a look at the 5 high growth healthcare stocks to buy. To see more such companies, go directly to 12 High Growth Healthcare Stocks to Buy.
5. Intra-Cellular Therapies, Inc. (NASDAQ:ITCI)
Number of Hedge Fund Holders: 31
Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) is one of the high growth healthcare companies that is working on treatments for neuropsychiatric and neurologic disorders. In November 2022 Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) posted stellar Q4 results which showed huge revenue growth. Intra-Cellular Therapies, Inc. (NASDAQ:ITCI)’s revenue in the September quarter jumped about 220% on a YoY basis to total $71.9 million, beating estimates by $5.9 million. During the period, Intra-Cellular Therapies, Inc. (NASDAQ:ITCI)’s bipolar depression treatment Caplyta saw its sales rise about 230% on a YoY basis.
Intra-Cellular Therapies, Inc. (NASDAQ:ITCI)’s cash, cash equivalents, restricted cash and investment securities totaled $630.5 million as of the end of September. GAAP EPS in the period came in at -$0.57, beating estimates by $0.25.
At the end of the September quarter of 2022, 31 hedge funds had stakes in Intra-Cellular Therapies, Inc. (NASDAQ:ITCI). The total value of these stakes during this period was $493 million. The biggest stakeholder of Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) during this period was Israel Englander’s Millennium Management which owns an $86 million stake in the company.
TimesSquare Capital made the following comment about Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) in its Q3 2022 investor letter:
“Slipping by -18% was Intra-Cellular Therapies, Inc. (NASDAQ:ITCI), which develops small molecule treatments for neurological disorders. The company reported revenues that were better than expected, though earnings were lower. There was an acceleration of sales for Caplyta, a treatment for schizophrenia and bipolar depression. However, some investors appeared concerned that as Caplyta volumes increased to a higher level that the rate of growth will slow. We view the projected growth trajectory positively, as well as Caplyta’s potential for use in other indications, so we added to our position.”
4. Evolent Health, Inc. (NYSE:EVH)
Number of Hedge Fund Holders: 32
Healthcare solutions provider Evolent Health, Inc. (NYSE:EVH) is one of the high growth healthcare stocks right now. During the third quarter Evolent Health, Inc. (NYSE:EVH)’s revenue increased by 58.5% on a YoY basis to reach $352.6 million, missing estimates by $4.18 million. Adjusted EPS in the quarter came in at $0.59, beating estimates by $0.49.
Evolent Health, Inc. (NYSE:EVH) said that it expects its Q4 revenue in the range of $361 million to $381 million, versus the consensus estimate of $376.16 million. Adjusted EBITDA was expected in the range of $24 million to $29 million.
In January Evolent Health, Inc. (NYSE:EVH) jumped after the company announced expansion of its partnership with Humana in oncology.
Carillon Eagle Small Cap Growth Fund made the following comment about Evolent Health, Inc. (NYSE:EVH) in its Q4 2022 investor letter:
“Evolent Health, Inc. (NYSE:EVH) provides a platform of technology-enabled administrative and clinical management services to provider networks and managed care organizations to help them manage the care of patients under value-based care (VBC) arrangements. Unfortunately in the quarter, the company missed revenue estimates due to a retroactive adjustment resulting from the way that the Centers for Medicare and Medicaid Services calculates savings for companies participating in gainsharing pilot programs with them. While this was disappointing, later in the quarter the company announced an accretive acquisition of a specialty benefit management organization that focuses on managing costs and quality in radiology, musculoskeletal medicine, physical medicine, and genetics. The announcement of this acquisition was favorably received by investors, and when combined with recent impressive new client additions, sets the company up for what should be a strong 2023.”
3. Inspire Medical Systems, Inc. (NYSE:INSP)
Number of Hedge Fund Holders: 37
Inspire Medical Systems, Inc. (NYSE:INSP) is a Minnesota-based company that is working in the sleep apnea domain. Over the past 12 months Inspire Medical Systems, Inc. (NYSE:INSP) has gained about 22%. Earlier this month Inspire Medical Systems, Inc. (NYSE:INSP) posted its fourth quarter results. Revenue in the quarter jumped about 76% on a YoY basis to total $137.9 million, beating estimates by $0.15 million. GAAP EPS in the period came in at $0.10, beating estimates by $0.68. For full-year 2023 it expects its revenue to come in the range of $560 million to $570 million, versus the consensus estimate of $545.71 million.
In December, KeyBanc analyst Matthew Mishan started covering Inspire Medical Systems, Inc. (NYSE:INSP) with an Overweight rating and a $287 price target. The analyst believes Inspire Medical Systems, Inc. (NYSE:INSP) is operating in an underpenetrated market and has the potential to beat revenue growth estimates.
Baron Small Cap Fund made the following comment about Inspire Medical Systems, Inc. (NYSE:INSP) in its Q4 2022 investor letter:
“Inspire Medical Systems, Inc. (NYSE:INSP) sells an implantable device that treats sleep apnea. Revenues grew an astounding 77% in the quarter, way ahead of expectations, and the stock popped. We believe Inspire sells a unique product that has great advantages to CPAP devices, the dominant therapy, and is gaining significant market share. Management is executing on all frontsdriving awareness through effective advertising, increasing procedures at existing centers, and adding new centers. They are also continuing to innovate. This quarter a new Bluetooth remote control device was introduced. The next generation device will come out in mid-2023, and we expect approval of new indications, which will expand the available market. We expect revenues to continue to grow rapidly, with sales potential well over $2 billion, which is five-fold higher than current revenue. We believe the company will be profitable in 2023 and margins will be high over time.”
2. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Holders: 44
California-based Neurocrine Biosciences, Inc. (NASDAQ:NBIX) ranks 2nd in our list of 12 high growth healthcare stocks to buy. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) focuses on neurological diseases. In the fourth quarter of 2022 Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s revenue jumped about 32% on a YoY basis to reach $412 million, beating estimates by $3.04 million.
Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s sales for INGREZZA during fiscal 2022 came in at $1.43 billion.
Earlier this month, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) jumped after Morgan Stanley upgraded NBIX to Overweight from Equal Weight. The firm noted FDA’s approval for Ingrezza for Huntington’s disease chorea.
44 of the 920 hedge funds tracked by Insider Monkey had stakes in Neurocrine Biosciences, Inc. (NASDAQ:NBIX) at the end of the third quarter of 2022. The total value of these hedge funds’ stakes was about $1.3 billion. The biggest stakeholder of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) during this period was David Witzke and Michael Gregory’s Avidity Partners Management which owned a $197.1 million stake in the company.
1. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 55
Massachusetts-based Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is involved in the discovery, development and commercialization of RNA interference therapeutics. In October, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) posted its Q3 results, according to which its revenues jumped about 41% in the quarter on a year-over-year basis to reach $264.31 million. However, the figure missed analyst estimates. In January, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) announced that its preliminary full year global net product revenues for its drugs Onpattro, Amvuttra, Givlaari and Oxlumo came in at $894 million. This shows a growth of about 35% on a YoY basis.
As of the end of the third quarter of 2022, 55 hedge funds in Insider Monkey’s database had stakes in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). The total value of these stakes was over $1.1 billion.
Here is what Baron Funds specifically said about Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) in its Q3 2022 investor letter:
“We initiated a position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), a commercial stage biopharmaceutical company which pioneered a new class of innovative medicines based on RNA interference (RNAi). This class of medicines acts by silencing the messenger RNA that encodes for the proteins that can cause disease, thereby preventing these disease-causing proteins from being made. Alnylam’s validated platform has demonstrated a higher probability of success in drug development versus the industry overall with five medicines approved in less than four years. During the quarter, the company reported positive results from its Apollo-B Phase 3 study of Patisiran in patients with ATTR Amyloidosis with Cardiomyopathy, a rare, progressively debilitating, and fatal disease caused by misfolded TTR proteins which accumulate as amyloid deposits in the heart, nerves, and GI tract. Alnylam also has multiple other late-stage medicines in the pipeline including a new blood pressure drug in Phase 2 studies that can potentially be delivered as a twice-yearly shot. Alnylam has an extensive intellectual property estate with fundamental RNAi technology, delivery, and productspecific protection, and is in a position to achieve sustainable profitability within the next few years.”
You can also take a peek at 10 Most Promising EV Battery Stocks to Buy and 11 Most Profitable Canadian Stocks.
