In this piece, we will take a look at the five most profitable biotech stocks to invest in. If you want to skip our overview of the global biotechnology industry and the latest trends, then you can take a look at the 12 Most Profitable Biotech Stocks To Invest In.
5. Amgen Inc. (NASDAQ:AMGN)
Number of Q4 2023 Hedge Fund Shareholders: 69
Latest TTM Net Income: $6.7 billion
Amgen Inc. (NASDAQ:AMGN) is an American firm headquartered in Thousand Oaks, California. The firm has been performing well on the financial front lately as it has beaten analyst EPS estimates in all four of its latest quarters.
During Q4 2023, 69 out of the 933 hedge funds tracked by Insider Monkey had bought Amgen Inc. (NASDAQ:AMGN)’s shares. Josh Overdeck and David Siegel’s Two Sigma Advisors was the biggest shareholder due to its $333 million stake.
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4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Q4 2023 Hedge Fund Shareholders: 60
Latest TTM Net Income: $8 billion
Bristol-Myers Squibb Company (NYSE:BMY) is one of the biggest healthcare companies in the world. Also a key player in the biotechnology industry, its cancer treatments have won global biotechnology awards, and to top things off, Bristol-Myers Squibb Company (NYSE:BMY) announced a $14 billion biotech acquisition in December 2023 for a company developing schizophrenia medication.
Insider Monkey scoured through 933 hedge funds for their fourth quarter of 2023 shareholdings and found that 60 were the firm’s investors. The largest Bristol-Myers Squibb Company (NYSE:BMY) investor is Josh Overdeck and David Siegel’s Two Sigma Advisors as it owns $456 million worth of shares.
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Follow Bristol Myers Squibb Co (NYSE:BMY)
3. Novo Nordisk A/S (NYSE:NVO)
Number of Q4 2023 Hedge Fund Shareholders: 58
Latest TTM Net Income: $12.25 billion
Novo Nordisk A/S (NYSE:NVO) is a global biotechnology giant headquartered in Bagsvaerd, Denmark. The firm made quite a bit of hype in March 2024, when its weight loss drug Wegovy propelled its market capitalization higher than Tesla’s. As if this weren’t enough, the month as the drug also received FDA clearance to treat heart problems.
Insider Monkey dug through 933 hedge funds for their December quarter of 2023 shareholdings and found that 58 had invested in Novo Nordisk A/S (NYSE:NVO). Ken Fisher’s Fisher Asset Management owned the biggest stake which was worth $1.4 billion.
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Follow Novo Nordisk A S (NYSE:NVO)
2. Novartis AG (NYSE:NVS)
Number of Q4 2023 Hedge Fund Shareholders: 28
Latest TTM Net Income: $14.8 billion
Novartis AG (NYSE:NVS) is a Swiss healthcare giant headquartered in Basel, Switzerland. Like Thermo Fisher, it is a backend biotechnology stock, and its presence in the industry enables biotech companies to avail of contract manufacturing services. The shares are rated Buy on average, and the average analyst share price target is $113.
As of December 2023 end, 28 out of the 933 hedge funds tracked by Insider Monkey had bought and owned the firm’s shares. Out of these, the largest Novartis AG (NYSE:NVS) shareholder was Jim Simons’ Renaissance Technologies due to its $286 million investment.
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1. Johnson & Johnson (NYSE:JNJ)
Number of Q4 2023 Hedge Fund Shareholders: 28
Latest TTM Net Income: $35.1 billion
Johnson & Johnson (NYSE:JNJ) is the well heeled American healthcare and general wellness company based in New Jersey. It also owns a variety of biotechnology companies in its portfolio, with the most notable one being the former Janssen Pharma. This hasn’t stopped Johnson & Johnson (NYSE:JNJ) from expanding though, as it revealed in December 2023 that it will buy a biotech company focusing on cancer treatments for a $2 billion price tag.
81 out of the 933 hedge funds tracked by Insider Monkey had invested in Johnson & Johnson (NYSE:JNJ) as of Q4 2023 end. Ken Fisher’s Fisher Asset Management owned the biggest stake which was worth $995 million.
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Disclosure: None. You can also take a look at 11 Best Small Cap Pharma Stocks to Invest In and 20 Healthiest States in the US in 2023.
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