5 Stocks That Healthcare Fund Deerfield Management Was Buying in Q2

#3 DBV Technologies SA – ADR (NASDAQ:DBVT)

– Shares Owned by Deerfield Management (as of June 30): 1.74 million

– Value of Holding (as of June 30): $56.86 Million

Moving on, Deerfield Management boosted its stake in DBV Technologies SA – ADR (NASDAQ:DBVT) by 114% during the second quarter. DBV Technologies SA – ADR (NASDAQ:DBVT) is a France-based clinical-stage biopharmaceutical company that is developing a technology platform called Vaskin, which it says has the potential to change the field of immunotherapy. Apart from Aimmune Therapeutics Inc (NASDAQ:AIMT), DBV Technologies is the only company that is in late-stage development for a peanut allergy treatment, which is touted to be a multi-billion dollar market. On August 23, analysts at Leerink Swann reiterated their ‘Buy’ rating and $54 price target on the stock, which represents potential upside of 53.5%. Though the ownership of DBV Technologies among the hedge funds in our database declined by two to ten during the second quarter, the aggregate value of their holdings in it increased by $18.2 million to $298.42 million.

#2 Adeptus Health Inc (NYSE:ADPT)

– Shares Owned by Deerfield Management (as of June 30): 1.6 million

– Value of Holding (as of June 30): $82.7 Million

With Deerfield Management increasing its stake in the company by 68% during the second quarter, Adeptus Health Inc (NYSE:ADPT) jumped six spots in the fund’s portfolio to become its sixth-most valuable equity holding at the end of June. However, it remains to be seen if it can hold on to that spot, as Adeptus Health Inc (NYSE:ADPT)’s stock has already lost over 20% of its value since the end of the second quarter. A large part of that loss came earlier this month when Thomas Hall, the Chairman and CEO of Adeptus Health informed the company that he intends to retire as soon as a successor is found, or by mid-2017 at the latest. For its most recent quarter, the company declared EPS of $0.48 on revenue of $100.17 million versus analysts’ estimates of EPS of $0.51 on revenue of $93.92 million. The number of hedge funds long Adeptus Health among those we track inched down by one to 24 during the second quarter, but the aggregate value of their holdings in the company climbed by 29% to $307.27 million.

#1 GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH)

– Shares Owned by Deerfield Management (as of June 30): 991,800

– Value of Holding (as of June 30): $90.82Million

A 27% rise in its stock during the second quarter coupled with Deerfield Management increasing its stake in the company by 48% during that time pushed GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) to the third position in the fund’s equity portfolio at the end of June, from 15th at the end of March. After suffering a major beating between July 2015 and March 2016, shares of GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) have had a terrific rise since and are currently up by 45.6% this year. A major part of the gains that the stock has seen came earlier this month amid rumors that the company is working with an investment bank to review takeover offers that it has received from unknown entities. The rally that the stock has enjoyed this year hasn’t impacted the bullish view  on it of analysts, who still think GW Pharmaceuticals is the best legal marijuana stock for investors to buy. On September 8, analysts at Cantor Fitzgerald reiterated their ‘Buy’ rating on the stock while setting a price target of $165 on it, a 60% upside call.

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