In this article, we will look at 5 pharmaceutical stocks to buy now according to billionaire Kerr Neilson. If you want to read about Kerr Neilson’s investment philosophy and Platinum Asset Management’s past performance, you can go to 10 Pharmaceutical Stocks to Buy Now According to Billionaire Kerr Neilson.
5. Prometheus Biosciences, Inc. (NASDAQ:RXDX)
Stake Value of Platinum Asset Management: $20,621,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.57%
Number of Hedge Fund Holders: 13
Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a biopharmaceutical company involved in the discovery, development, and commercialization of therapeutics and diagnostics products for the treatment of inflammatory bowel diseases.
This February, BTIG analyst Julian Harrison initiated coverage of Prometheus Biosciences, Inc. (NASDAQ:RXDX) with a Buy rating and a $62 price target. The analyst is bullish on the stock, noting that the company’s precision medicine platform in autoimmune diseases has the potential to improve outcomes, reduce trial costs, and ultimately drive the utilization of approved therapeutics.
On March 9, 2022, the company reported fourth-quarter 2021 revenues of $1.04 million and beat revenue estimates by $0.42 million. As of April 13, Prometheus Biosciences, Inc. (NASDAQ:RXDX) has gained 67.29% over the past twelve months and is worth $1.39 billion on the open market.
Insider Monkey was able to identify 13 hedge funds that were bullish on Prometheus Biosciences, Inc. (NASDAQ:RXDX) at the end of the fourth quarter of 2021. The total stakes of these funds in the company equaled $373.24 million. This is compared to 14 positions in the prior quarter with stakes worth $255.2 million. The hedge fund sentiment around Prometheus Biosciences, Inc. (NASDAQ:RXDX) is positive.
4. IDEAYA Biosciences, Inc. (NASDAQ:IDYA)
Stake Value of Platinum Asset Management: $20,829,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.57%
Number of Hedge Fund Holders: 14
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is an oncology-focused precision medicine company engaged in the discovery and development of therapeutics for patient populations selected using molecular diagnostics. On March 15, 2022, IDEAYA Biosciences, Inc. (NASDAQ:IDYA) reported quarterly revenues of $2.96 million for the fiscal fourth quarter of 2021.
This March, Stifel analyst Benjamin Burnett upgraded Ideaya Biosciences, Inc. (NASDAQ:IDYA) to Buy from Hold with a price target of $20, down from $27. Burnett commented that he sees one in three people being successfully treated with the company’s leading synthetic lethality program, IDE397. The analyst noted that the stock now has a more favorable risk/reward ratio and can prove to be a valuable investment in the long term.
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is rising in popularity among elite hedge funds. By the close of Q4 2021, 14 hedge funds were bullish on IDEAYA Biosciences, Inc. (NASDAQ:IDYA) having stakes of more than $187 million in the company. This is compared to 11 hedge funds in Q3 2021, with stakes worth $131.83 million. The hedge fund sentiment for the stock is positive.
3. Recursion Pharmaceuticals Inc (NASDAQ:RXRX)
Stake Value of Platinum Asset Management: $24,733,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.68%
Number of Hedge Fund Holders: 14
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage biopharmaceutical company that is involved in decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery.
This April, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) announced that the U.S. FDA has granted the company Fast Track designation for REC-4881, the company’s treatment for familial adenomatous polyposis.
Platinum Asset Management upped its Q3 2021 stakes in the Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) by 119% in the fourth quarter of 2021. As of December 31, 2021, the fund’s stakes are valued at $24.73 million, which represents 0.68% of its Q4 2021 investment portfolio.
Insider Monkey’s data shows 14 hedge funds that held long positions in Recursion Pharmaceuticals Inc (NASDAQ:RXRX) at the end of the fourth quarter of 2021. The total stakes of these hedge funds amounted to more than $220 million. This is compared to 13 positions in the preceding quarter with stakes worth $299.05 million.
Here is what Baron Discovery Fund had to say about Recursion Pharmaceuticals Inc (NASDAQ:RXRX) in its Q2 2021 investor letter:
“Recursion Pharmaceuticals, Inc. is a biotechnology company engaged in technology-enabled drug discovery. The company uses automated wet-lab infrastructure (actual biologic experimentation) with cell perturbations (multiple experiments done on the duplicate cells), and image capture to generate data at large scale. It also operates its own supercomputer (the “BioHive”) to drive “in-silico” (virtual, software-enabled) inferences based on its data and wet-lab experiments. This combined approach has generated a strong pipeline of programs spanning early discovery to clinical trials, including a collaboration deal with Bayer. The company’s use of artificial intelligence and machine learning lowers the cost of drug discovery and speeds up time to market, and we believe this paradigm is in the early innings of disrupting the entire biopharmaceutical industry. Since Recursion’s program pipeline is still relatively early stage, we have started with a small investment.”
2. Exscientia PLC (NASDAQ:EXAI)
Stake Value of Platinum Asset Management: $32,568,000
Percentage of Platinum Asset Management’s 13F Portfolio: 0.9%
Number of Hedge Fund Holders: 11
Exscientia PLC (NASDAQ:EXAI) is a leading artificial intelligence-driven pharmaceutical company involved in discovering, designing, and developing drugs. The company offers end-to-end AI solutions for target identification, drug candidate design, translational models, and patient selection. On March 23, 2022, Exscientia PLC (NASDAQ:EXAI) reported fourth-quarter 2021 revenues of $5.47 million.
Last October, BofA analyst Michael Ryskin initiated coverage of Exscientia PLC (NASDAQ:EXAI) with a Buy rating and a $27 price target. The analyst noted that using AI to develop drugs in a cost-effective way will significantly drive the growth of the stock.
Exscientia PLC (NASDAQ:EXAI) was spotted on 11 hedge fund portfolios at the end of the fourth quarter of 2021. The total stakes of these funds in the company came to $143.77 million. Of these, $32.56 million belonged to Platinum Asset Management. The investment covers 0.9% of Kerr Neilson’s Q4 2021 investment portfolio.
1. Gilead Sciences, Inc. (NASDAQ:GILD)
Stake Value of Platinum Asset Management: $81,347,000
Percentage of Platinum Asset Management’s 13F Portfolio: 2.26%
Number of Hedge Fund Holders: 54
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that develops drugs in the areas of unmet medical need including HIV, hepatitis B, hepatitis C, and influenza in the United States, Europe, and internationally. This February, the company reported earnings per share of $0.69 for the fiscal fourth quarter of 2021 and generated quarterly revenues of $7.24 billion, beating revenue estimates by $0.60 million.
On April 12, Piper Sandler analyst Do Kim raised his price target on Gilead Sciences, Inc. (NASDAQ:GILD) to $72 from $71 and maintained a Neutral rating on the shares.
Gilead Sciences, Inc. (NASDAQ:GILD) is a popular stock pick among value investors. By the end of the fourth quarter of 2021, Gilead Sciences, Inc. (NASDAQ:GILD) was spotted on 54 hedge fund portfolios. The total stakes of these funds came to $2.36 billion, up from $1.75 billion in the prior quarter with 55 positions. The hedge fund sentiment for the stock is positive.
ClearBridge Investments recently published its fourth-quarter 2021 investor letter in which it mentioned Gilead Sciences, Inc. (NASDAQ:GILD). Here is what the firm had to say about the stock:
“Other pharma companies are providing solutions as well. Biopharmaceutical company Gilead Sciences’ remdesivir, sold under the brand name Veklury, is a broad-spectrum antiviral medication administered by intravenous infusion; it can shorten the time to recovery in hospitalized patients and reduce the risk of hospitalization and death in non-hospitalized patients.”
You can also take a look at 10 Best Pharmaceutical Stocks to Buy According to Cathie Wood and 10 Best Pharmaceutical Stocks to Buy According to Billionaire Joseph Edelman.
