In this article, we take a look at the 5 pharmaceutical stocks to buy according to Brandon Haley’s Holocene Advisors. If you want to check out our detailed analysis of Holocene Advisors’ 13F portfolio, go directly to 10 Pharmaceutical Stocks to Buy According to Brandon Haley’s Holocene Advisors.
5. Baxter International Inc. (NYSE:BAX)
Holocene Advisors’ Stake Value: $82.4 million
Percentage of Holocene Advisors’ 13F Portfolio: 0.44%
Number of Hedge Fund Holders: 42
Baxter International Inc. (NYSE:BAX) is an American international company based in Illinois. The company primarily focuses on development of solutions for various kidney diseases. Holocene Advisors owns over a million shares in the company after a bullish stake increase by 1904% in the third quarter of 2021. In the same quarter, the hedge fund Generation Investment Management was the leading stakeholder in the company with over 20 million shares making up 6.93% of their total portfolio.
The company filed a revenue of $3.23 billion in the same quarter with EPS of $1.02 beating analyst estimates by $0.08. On November 11, Baxter International Inc. (NYSE:BAX) announced a roughly $100M expansion of its sterile fill/finish manufacturing facility located in Germany. This facility is run by BioPharma Solutions, a business unit of Baxter International Inc. (NYSE:BAX) that specializes in partnering with foremost pharmaceutical and biotechnology companies on the development and contract-manufacturing of drug products for parenteral pharmaceuticals.
4. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Holocene Advisors’ Stake Value: $124.8 million
Percentage of Holocene Advisors’ 13F Portfolio: 0.67%
Number of Hedge Fund Holders: 40
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is another leading pharmaceutical and biotechnology company on the list. It is headquartered in Massachusetts, US. It is primarily focused on developing RNA interference therapeutics for genetic diseases. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) posted a Q3 revenue of 2021 at $187.6 million. It missed the analyst estimates for EPS by -$0.15, coming up with an EPS at -$1.72.
Holocene Advisors stake in the company comprises over 0.6 million shares in the third quarter of 2021. This is after the hedge fund increased its stake by 20% in the company in the same quarter. However, the leading stakeholder in the company is the hedge fund Casdin Capital with a total of 1 million shares in the company in the third quarter.
On November 22, Needham analyst Joseph Stringer raised the price target on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) to $205 from $180 and kept a ‘Buy’ rating on the shares.
3. Acceleron Pharma Inc. (NASDAQ:XLRN)
Holocene Advisors’ Stake Value: $128.5 million
Percentage of Holocene Advisors’ 13F Portfolio: 0.69%
Number of Hedge Fund Holders: 58
Acceleron Pharma Inc. (NASDAQ:XLRN) is another pharmaceutical company based in Massachusetts, US. The company is primarily focused on the development of drugs that regulate specific proteins involved in repairing cell and tissue damage. Its stock is prominent in the list of 10 pharmaceutical stocks to buy according to Brandon Haley’s Holocene Advisors. Holocene Advisors owns over 0.7 million shares in the company. They however, decreased their stake by 15% in the third quarter of 2021.
On November 22, Merck & Co., Inc. (NYSE:MRK) announced the successful acquisition of Acceleron Pharma Inc. (NASDAQ:XLRN).
2. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
Holocene Advisors’ Stake Value: $140 million
Percentage of Holocene Advisors’ 13F Portfolio: 0.76%
Number of Hedge Fund Holders: 46
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is a clinical level therapeutics and pharmaceutical company based in California, US. It is focused on finding breakthrough medical solutions to cancer. Holocene Advisors owns nearly 0.8 million shares in the company after a 10% stake-increase in the third quarter of 2021.
BMO Capital analyst Evan Seigerman initiated the coverage of Mirati Therapeutics, Inc. (NASDAQ:MRTX) with an ‘Outperform’ rating and a price target of $187. The analyst said his rating is based on his view that adagrasib is a better inhibitor than KRAS G12C; that Lumakras’ first move advantage is most likely short-lived; a promising pipeline with a unique inhibitor to KRAS G12D; and the potential that Mirati Therapeutics, Inc. (NASDAQ:MRTX) would be an “attractive” acquisition candidate for a bigger biopharma company.
1. AbbVie Inc. (NYSE:ABBV)
Holocene Advisors’ Stake Value: $195 million
Percentage of Holocene Advisors’ 13F Portfolio: 1.06%
Number of Hedge Fund Holders: 81
AbbVie Inc. (NYSE:ABBV) grabs the number 1 spot on the list for being the pharmaceutical company that Holocene Advisors is most heavily invested in relative to other pharma companies. It is another company on the list that is based in Illinois, US. It is focused on a variety of areas of research for drug development particularly for cystic fibrosis. Holocene Advisors owns 1.8 million shares in the company as of Q3 of 2021. However, the leading stakeholder in the company was famous investor Warren Buffett’s Berkshire Hathaway with over 14 million shares in the third quarter.
On November 17, Truist analyst Robyn Karnauskas pointed to a ClinicalTrials.gov posting on AbbVie’s Phase 2 study to analyze oral capsules of Galicaftor/Navocaftor/ABBV-119 in combination therapy in adults with Cystic Fibrosis, saying that the triple data could be pushed back a year or so according to an update posted on the site. The analyst has a ‘Buy’ rating on the company shares. AbbVie Inc. (NYSE:ABBV) posted a third quarter revenue of $14.34 billion with an EPS of $3.33 beating analyst estimates by $0.11.
You can also take a peek at the 10 Best Healthcare Stocks to Buy According to Hedge Funds and 10 Latest Stock Picks of Billionaire Ray Dalio.
