In this article, we discuss the top 5 pharmaceutical stocks to buy based on billionaire Ken Griffin’s portfolio. If you want our detailed analysis of the pharmaceutical industry, go directly to 10 Pharmaceutical Stocks to Buy Based on Billionaire Ken Griffin’s Portfolio.
5. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)
Citadel Investment Group’s Stake Value: $198,174,000
Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 60
Headquartered in Dublin, Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is a global biotechnology company that is engaged in the research and development of medicines that treat rare and rheumatic diseases. Ken Griffin, in Q3 2021, increased his position in Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) by 5%, holding 1.80 million shares of the company worth $198.1 million, representing 0.04% of the billionaire’s Q3 securities.
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) on November 3 announced earnings for the third quarter. EPS in the period totaled $1.75, exceeding estimates by $0.21. The quarterly revenue increased almost 63% year-over-year, coming in at $1.04 billion, beating estimates by $57.5 million.
On November 18, Goldman Sachs analyst Madhu Kumar upgraded Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) to Buy from Neutral with a $168 price target, observing that the company’s top medical assets are major value and revenue drivers.
Kurt Von Emster’s VenBio Select Advisor is the leading stakeholder of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), with 9 million shares worth $985.86 million. Overall, 60 hedge funds in the database of Insider Monkey were long Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) in the third quarter, with total stakes amounting to $4.57 million.
Here is what Carillon Tower Advisers has to say about Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) in their Q1 2021 investor letter:
“Horizon Therapeutics is a biopharmaceutical company whose primary focus is research, development, and marketing of late-stage pharmaceutical products. After experiencing some unfortunate manufacturing hiccups in the later stages of 2020 for its key product Tepezza, which is used in the treatment of thyroid eye disease, the company recently received positive news that should relieve their supply issues going forward. With manufacturing of Tepezza back online after being forced to halt due to Operation Warp Speed’s COVID-19 vaccine production orders, Horizon expects patient treatments to resume in mid-April.”
4. Boston Scientific Corporation (NYSE:BSX)
Citadel Investment Group’s Stake Value: $205,400,000
Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 47
Boston Scientific Corporation (NYSE:BSX) manufactures medical devices that enable treatments including interventional radiology, interventional cardiology, neurovascular intervention, cardiac surgery, vascular surgery, and endoscopy, among others. Ken Griffin holds a $205.4 million stake in Boston Scientific Corporation (NYSE:BSX), reducing his position in the company by 14% in the third quarter.
On October 27, Piper Sandler analyst Matt O’Brien reiterated an Overweight rating and a price target of $51 on the Boston Scientific Corporation (NYSE:BSX) shares.
Thomas Steyer’s Farallon Capital is the largest stakeholder of Boston Scientific Corporation (NYSE:BSX), with 14 million shares valued at $607.5 million. Overall, 47 hedge funds in the Q3 database of Insider Monkey were long Boston Scientific Corporation (NYSE:BSX), down from 51 funds in the prior quarter.
Here is what Artisan Partners has to say about Boston Scientific Corporation (NYSE:BSX) in its Q2 2021 investor letter:
“Among our top contributors (includes) Boston Scientific. Shares of Boston Scientific were volatile throughout most of 2020 as the pandemic drove significant drops in elective medical procedures, though our longer-term constructive view and belief elective medical procedures would bounce back post pandemic prompted us to add to our position. We have been rewarded with shares rebounding this year alongside a recovery in elective medical procedures. Longer-term, we believe the company’s investments in higher growth categories will drive revenue growth to the higher end of its peer group with rising margins.”
3. Seagen Inc. (NASDAQ:SGEN)
Citadel Investment Group’s Stake Value: $210,015,000
Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 40
Seagen Inc. (NASDAQ:SGEN), a Washington-based biotech company specializing in antibody-based therapies for treating cancer, is one of the best pharmaceutical stocks to buy based on billionaire Ken Griffin’s portfolio. Griffin, via Citadel Investment Group, owns a $210 million position in Seagen Inc. (NASDAQ:SGEN) in the third quarter, which represents 0.04% of the hedge fund’s total 13F portfolio.
At the end of Q3 2021, 40 hedge funds in the database of Insider Monkey’s elite funds reported owning stakes in Seagen Inc. (NASDAQ:SGEN), amounting to $9.47 billion. This is an increase compared to 37 funds being bullish on Seagen Inc. (NASDAQ:SGEN) in the preceding quarter, holding total stakes worth $8.70 billion.
On October 28, Seagen Inc. (NASDAQ:SGEN) announced its Q3 results, posting an EPS of -$1.61, missing estimates by -$1.04. The quarterly revenue totaled $424.06 million, down 60.06% as compared to the preceding year quarter, but exceeding estimates by $38.91 million.
Wolfe Research analyst Andrew Galler on November 8 initiated coverage of Seagen Inc. (NASDAQ:SGEN) with a Peer Perform rating and a $195 price target.
Here is what Carillon Tower Advisers has to say about Seagen Inc. (NASDAQ:SGEN) in their Q4 2020 investor letter:
“Seagen is a biotechnology company engaged in the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer. The stock slumped a bit in the quarter after the firm announced it was lowering guidance for its drug Adcetris, which is an antibody medication used to treat lymphoma. We remain optimistic on the stock, primarily due to the company’s appealing pipeline of new products as well as the continued growth of Padcev (for metastatic urothelial cancer) and Tucatinib (for breast cancer).”
2. Pfizer Inc. (NYSE:PFE)
Citadel Investment Group’s Stake Value: $228,722,000
Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 74
Citadel Investment Group owns 5.31 million Pfizer Inc. (NYSE:PFE) shares as of Q3 2021, increasing its stake in the company by 650% in the third quarter, making Pfizer Inc. (NYSE:PFE) one of the best pharmaceutical stocks to buy according to billionaire Ken Griffin. Pfizer Inc. (NYSE:PFE) is an American pharmaceutical and biotechnology company that focuses on internal medicine, immunology, inflammation, oncology, rare diseases, anti infectives, and vaccines.
The company scored headlines when Pfizer Inc. (NYSE:PFE) vaccine for the COVID-19 was approved as one of the best vaccines by the World Health Organization, with Pfizer Inc. (NYSE:PFE) stating on December 8 that three doses of the current vaccine will offer protection against the COVID-19 Omicron variant.
Pfizer Inc. (NYSE:PFE) announced Q3 earnings on November 2. EPS in the quarter came in at $1.34, beating estimates by $0.25. The $24.09 billion revenue also outperformed estimates by $1.28 billion, jumping 98.62% year-over-year.
Ric Dillon’s Diamond Hill Capital is the biggest Pfizer Inc. (NYSE:PFE) stakeholder from Q3, with 10.64 million shares worth $457.89 million. Overall, 74 hedge funds in the database of Insider Monkey were long Pfizer Inc. (NYSE:PFE) in the third quarter, up from 67 funds in the previous quarter.
Here is what ClearBridge Investments has to say about Pfizer Inc. (NYSE:PFE) in its Q1 2021 investor letter:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
1. Merck & Co., Inc. (NYSE:MRK)
Citadel Investment Group’s Stake Value: $231,980,000
Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 77
Merck & Co., Inc. (NYSE:MRK) is the top pharmaceutical stock based on billionaire Ken Griffin’s Q3 portfolio, with his hedge fund holding over 3 million shares of Merck & Co., Inc. (NYSE:MRK) in the third quarter, worth $231.98 million, accounting for 0.04% of the fund’s total Q3 portfolio. Merck & Co., Inc. (NYSE:MRK) is an American pharmaceutical company working to prevent and treat diseases that affect people and animals, including cancer, infectious diseases like HIV and Ebola, and emerging animal diseases.
Merck & Co., Inc. (NYSE:MRK) reported Q3 results on October 28. EPS for the period amounted to $1.75, beating estimates by $0.20. The quarterly revenue equaled $13.15 billion, up 4.80% from the preceding year quarter, exceeding estimates by $833.53 million.
On December 7, Guggenheim analyst Seamus Fernandez downgraded Merck & Co., Inc. (NYSE:MRK) to Neutral from Buy and removed his prior $98 price target on the shares, observing low pipeline visibility.
Fisher Asset Management is the biggest Merck & Co., Inc. (NYSE:MRK) stakeholder from Q3, with 10.63 million shares worth $798.66 million. Overall, 77 hedge funds reported owning stakes worth $4.55 billion in Merck & Co., Inc. (NYSE:MRK) in the third quarter, down from 79 funds in the preceding quarter, holding stakes valued at $5.29 billion.
Here is what Artisan Partners has to say about Merck & Co., Inc. (NYSE:MRK) in its Q1 2021 investor letter:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
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