5 Pharmaceutical Stocks to Buy According to Peter Kolchinsky’s RA Capital

1. Ascendis Pharma A/S (NASDAQ:ASND)

RA Capital Management’s Stake Value: $1.17 billion

Percentage of RA Capital Management’s 13F Portfolio: 16.31%

Number of Hedge Fund Holders: 23

Ascendis Pharma A/S (NASDAQ:ASND) is a Danish company developing therapeutics for growth hormone deficiency, hypoparathyroidism, and oncology. It was founded in 2006 and is headquartered in Hellerup, Denmark.

Ascendis Pharma A/S (NASDAQ:ASND) earned €1 million in revenue and -€1.47 in GAAP EPS during its third quarter.

Dr. Kolchinsky’s firm held 7.3 million Ascendis Pharma A/S (NASDAQ:ASND) shares in Q3, which were worth $1.17 billion and made up for 16.31% of its portfolio.

In its first quarter 2021 investor letter, Artisan Partners had the following to say about Ascendis Pharma A/S (NASDAQ:ASND):

“Among our bottom Q1 contributors was Ascendis Pharma. Ascendis Pharma underperformed in sympathy with the broader biotech sector as drug price legislation discussions in Washington have resumed. We believe the company’s fundamental outlook remains very positive as its TransCon technology platform—which enables protein-based medicines to be delivered in a sustainedrelease manner—yields promising, relatively low-risk new drug candidates. The company’s first product, TransCon hGH, the first weekly pediatric growth hormone injection, is expected to be approved by the FDA in the coming quarters. Two other promising rare endocrinology disease medicines are in clinical trials, with TransCon PTH for hypoparathyroidism already having shown compelling Phase II data in 2020. We believe these endocrinology products alone make Ascendis an attractive long-term investment opportunity, even before considering the company’s early stage cancer pipeline and its ~40% equity ownership in VISEN Pharmaceuticals, a Chinese drug developer. Furthermore, we believe drug price legislation will be manageable for Ascendis, which is far more dependent on creating new medicines than on raising the price of existing products.”

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