Below is the list of 5 pharmaceutical stocks to buy according to Jim Simons’ Euclidean Capital. For Jim Simons’ investment strategy, historical performance, and detailed discussion about his family office portfolio, please see 10 Pharmaceutical Stocks to Buy According to Jim Simons’ Euclidean Capital.
5. RAPT Therapeutics, Inc. (NASDAQ:RAPT)
Euclidean Capital’s Stake Value: $23.39 million
Percentage of Euclidean Capital’s 13F Portfolio: 5.46%
Number of Hedge Fund Holders: 21
Shares of RAPT Therapeutics, Inc. (NASDAQ:RAPT), a clinical-stage immunology-based biotechnology company, surged 59% since the beginning of this year, with most of the rally coming in the past three months amid positive results for RPT193 in early-stage atopic dermatitis study.
4. Denali Therapeutics Inc. (NASDAQ:DNLI)
Euclidean Capital’s Stake Value: $25.39 million
Percentage of Euclidean Capital’s 13F Portfolio: 5.93%
Number of Hedge Fund Holders: 22
Denali Therapeutics Inc. (NASDAQ:DNLI), a developer of therapeutic candidates for neurodegenerative diseases, has lost 32% since the beginning of the year. Despite significant gains, rating firms look bullish over Denali’s pipeline. Oppenheimer initiated coverage of Denali Therapeutics with an Outperform rating and $85 stock price target.
3. NGM Biopharmaceuticals, Inc. (NASDAQ:NGM)
Euclidean Capital’s Stake Value: $29.44 million
Percentage of Euclidean Capital’s 13F Portfolio: 6.88%
Number of Hedge Fund Holders: 19
The stock price of NGM Biopharmaceuticals, Inc. (NASDAQ:NGM) plunged sharply this year after the company abandoned its NASH candidate following phase 2 failure. Nevertheless, the market analysts highlighted confidence in the company’s stock after NGM Biopharma showed advancement in a Phase 2 study of NGM621, a monoclonal antibody to potentially inhibit complement C3.
Hedge funds sentiment also increased in NGM lately. The number of long hedge funds positions increased to 19 as of the end of the second quarter of 2021 from 18 in the prior period.
2. 23andMe Holding Co. (NASDAQ:ME)
Euclidean Capital’s Stake Value: $119 million
Percentage of Euclidean Capital’s 13F Portfolio: 27.98%
Number of Hedge Fund Holders: N/A
Euclidean Capital initiated a new position in 23andMe Holding Co. (NASDAQ:ME) in the second quarter of 2021 by purchasing 10.2 million shares. Nevertheless, the stock price bounced back after hitting a 52-weeks low of $8 at the beginning of October, thanks to price target upgrades and positive comments from EMJ Capital founder Eric Jackson.
As of the end of June, Jim Simons’ Euclidean Capital was the leading stakeholder in the company while Eli Casdin’s Casdin Capital was the second-largest hedge fund shareholder.
1. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP)
Euclidean Capital’s Stake Value: $133 million
Percentage of Euclidean Capital’s 13F Portfolio: 31.2%
Number of Hedge Fund Holders: 18
The share price of PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), the largest stock holding of billionaire Jim Simons’ Euclidean Capital, has been struggling to rebound so far this year. Meanwhile, some firms are seeing the dip as a buying opportunity. Goldman Sachs lifted its price target for PMV Pharmaceuticals to $43 with a Buy rating, citing strong data for its p53 reactivator PC14586, which is in Phase 1 trial for solid tumors.
You can also take a look at Goldman Sachs Stock Portfolio: Top 10 Stocks and 10 Pharmaceutical Stocks to Buy According to Lawrence Hawkins’ Prosight Capital.
