In this article, we will take a look at the 5 high growth healthcare stocks to buy. To read our analysis of the recent market activity, you can go to the 13 High Growth Healthcare Stocks to Buy.
5. BeiGene, Ltd. (NASDAQ:BGNE)
Number of Hedge Fund Holders: 13
BeiGene, Ltd. (NASDAQ:BGNE) is a global biotechnology company that is discovering and developing innovative oncology treatments that are more affordable and accessible to cancer patients worldwide.
BeiGene, Ltd. (NASDAQ:BGNE) announced on November 17 that the European Commission has granted marketing authorization for BRUKINSA® (zanubrutinib) in combination with obinutuzumab for the treatment of adult patients with relapsed or refractory (R/R) follicular lymphoma. This marks the fourth indication in the European Union for BRUKINSA.
On November 8, BeiGene, Ltd. (NASDAQ:BGNE) released its financial results for Q3 2023. Its revenue increased by 102% y-o-y to $781 million, while it generated a net income of $215 million compared to a net loss of $558 million.
Citigroup analyst lowered the price target for BeiGene, Ltd. (NASDAQ:BGNE) shares from $290 to $285 and maintained a ‘Buy’ rating, in October. The target price represents a potential upside of 61.83% based on the share price on December 22, one of the highest on our list of 13 high growth healthcare stocks to buy.
4. Genmab A/S (NASDAQ:GMAB)
Number of Hedge Fund Holders: 14
Founded in Copenhagen, Denmark in 1999, Genmab A/S (NASDAQ:GMAB) is an international biotechnology company on developing innovative and differentiated antibody therapeutics. Its pipeline includes bispecific T-cell engagers, next-generation immune checkpoint modulators, effector function enhanced antibodies and antibody-drug conjugates.
On November 7, Genmab A/S (NASDAQ:GMAB) released its financial results for 9M 2023. Its revenue increased by 26% y-o-y to DKK 11.8 billion while net income decreased by 25% y-o-y to DKK 3.7 billion.
As of Q3 2023, Genmab A/S (NASDAQ:GMAB) shares were held by 14 hedge funds. Jim Simons’ Renaissance Technologies was the largest hedge fund shareholder with ownership of 1.2 million shares valued at $41 million.
3. argenx SE (NASDAQ:ARGX)
Number of Hedge Fund Holders: 48
New York City-based argenx SE (NASDAQ:ARGX) is a global immunology company focused on translating immunology breakthroughs into a world-class portfolio of novel antibody-based medicines targeting severe autoimmune diseases.
On November 16, argenx SE (NASDAQ:ARGX) announced that the European Commission approved SC injectable VYVGART (efgartigimod alfa) as an add-on to standard therapy for the treatment of generalized myasthenia gravis in adult patients. VYVGART® is now approved for both intravenous and self-administered subcutaneous use in Europe.
As of Q3 2023, argenx SE (NASDAQ:ARGX) was ranked 3rd on our list of 13 high growth healthcare stocks to buy. The stock was held by 48 hedge funds with the total shares held by hedge funds valued at $2.3 billion.
In its Q3 2023 “Baron Health Care Fund” investor letter, Baron Funds made the following comments about argenx SE (NASDAQ:ARGX):
“In July, argenx reported positive data from a study of Vyvgart Hytrulo in adults with CIDP. The study met its primary endpoint demonstrating a significantly lower risk of relapse with Vyvgart Hytrulo versus a placebo. This positive data adds to the commercial opportunity for Vyvgart, which is in the early stages of commercial launch for the treatment of myasthenia gravis (MG). We estimate CIDP represents an additional $3 billion revenue opportunity. We believe Vyvgart and the subcutaneous version Vyvgart Hytrulo have the potential to generate at least $7 billion in peak sales in MG, CIDP, primary immune thrombocytopenia, and pemphigus vulgaris. Plus, the company is studying Vyvgart in other autoimmune diseases and the ultimate peak sales potential for the franchise could be much higher. We continue to believe argenx is a unique growth company with strong management.”
2. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 35
Cambridge, Massachusetts-based Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a leading biotechnology company focused on developing novel medicines to treat rare genetic, cardio metabolic, acute hepatic infectious and central nervous system and ocular diseases.
On November 2, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) released its financial results for Q3 2023. Its total income increased by 184% y-o-y to $751 million while it generated a net income of $148 million, compared to a net loss of $406 million in Q3 2022.
As of Q3 2023, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) shares, valued at $465 million, were owned by 35 of the 910 hedge funds tracked by Insider Monkey. Kurt Von Emster’s VenBio Select Advisor was at the top of this list with ownership of 1.0 million shares valued at $179 million.
1. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 78
San Diego, California-based DexCom, Inc. (NASDAQ:DXCM) is a medical devices company developing and marketing Continuous Glucose Monitoring (CGM) systems for ambulatory use by people with diabetes and by healthcare providers for the treatment of people with diabetes.
On October 26, DexCom, Inc. (NASDAQ:DXCM) released its financial results for Q3 2023. Its revenue increased by 27% y-o-y to $975 million, while net income increased by 19% y-o-y to $121 million. The company also announced a $500 million share repurchase program.
DexCom, Inc. (NASDAQ:DXCM) ranks 1st our list of 13 high growth healthcare stocks to buy. The shares of the company were owned by 78 prominent hedge funds as of September 30, with the aggregate shares held by these hedge funds valued at $1.9 billion.
In its Q3 2023 “Baron Health Care Fund” investor letter, Baron Funds, an investment management company, made the following comments about DexCom, Inc. (NASDAQ:DXCM):
“DexCom, Inc. is a leading provider of continuous glucose monitoring technology (CGM) for people with diabetes. The stock declined after Novo Nordisk released SELECT trial results. The trial results have led to investor concerns that Wegovy and medications in the same class (Ozempic, Mounjaro, and other drugs in development) may be broadly reimbursed by payors and widely adopted. This has raised questions about the long-term impact of GLP-1 drugs on the size of DexCom’s addressable market and the terminal value of the stock as these new medications could slow the progression of diabetes for those who are pre-diabetic and reduce the need for insulin for those with Type 2 diabetes. We think GLP-1 drugs will be used in conjunction with CGM technology, which will remain a critical diabetes management tool. We continue to believe DexCom has an attractive long-term growth runway ahead.”
You may also like to read 12 Best Foreign Stocks With Dividends and 13 Most Promising Low-Cost Stocks According to Analysts
