5 Worst Performing Biotech Stocks in 2023

In this article, we discuss 5 worst performing biotech stocks in 2023. If you want to read our detailed discussion about the biotech industry, head over to 15 Worst Performing Biotech Stocks in 2023.

5. Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE)

YTD Share Price Decline as of August 7: 32.47%

Number of Hedge Fund Holders: 17

Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) develops treatments for neurological diseases such as schizophrenia. Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) classifies as one of the worst performing biotech stocks in 2023, given its share price performance year-to-date. On August 3, Bank of America downgraded Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) from Buy to Neutral, trimming its price target to $31 per share. 

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE), as opposed to 16 funds in the previous quarter. Joseph Edelman’s Perceptive Advisors held the largest stake in the company, with 6.5 million shares valued at $158.8 million. 

4. BioNTech SE (NASDAQ:BNTX)

YTD Share Price Decline as of August 7: 34.03%

Number of Hedge Fund Holders: 22

BioNTech SE (NASDAQ:BNTX) develops treatments for different autoimmune diseases. Currently, the company is developing BNT111, which is in the second phase of clinical trials to treat melanoma. BioNTech SE (NASDAQ:BNTX) has previously partnered with Pfizer (NYSE:PFE) to develop the covid vaccine, Comirnaty. On July 11, BioNTech SE (NASDAQ:BNTX) also signed a licensing agreement with the Chinese company, Doer Biologics, for biotherapeutic agents. 

According to Insider Monkey’s first quarter database, 22 hedge funds were bullish on BioNTech SE (NASDAQ:BNTX). This number was 34 in the previous quarter. Thomas Steyer’s Farallon Capital held the largest position on the stock, with 137,644 shares worth $17 million. 

ClearBridge Value Equity Strategy said this about BioNTech SE (NASDAQ:BNTX) in its first quarter 2023 investor letter:

“In another example, one of the lowest correlating stocks in the portfolio is new holding BioNTech SE (NASDAQ:BNTX), a biotechnology company developing immunotherapies for cancer and other infectious diseases. A very attractive element of any drug stock is that it has idiosyncratic drivers that protect the portfolio from macro shocks and that lower portfolio correlation. In the case of BioNTech, the stock is undervalued due to material drops in its COVID-19 revenues. However, the company has accumulated almost $20 billion in cash and is using its research platform in mRNA and immunology to pursue lucrative opportunities in immuno-oncology and other major disease areas. This massive cash balance curtails our downside, while offering incredibly attractive optionality on the upside.”

3. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

YTD Share Price Decline as of August 7: 36.40%

Number of Hedge Fund Holders: 27

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) specializes in the development of treatments and solutions for neurological diseases. On August 1, Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) announced a Q2 non-GAAP EPS of $0.76, outperforming estimates by $0.02. It also announced a revenue of $134.2 million, falling short of estimates by $7.84 million. Furthermore, the company announced its decision to buy back common stock worth $125 million on August 1. 

According to Insider Monkey’s first quarter database, 27 hedge funds were bullish on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY), as compared to 26 funds in the previous quarter. Albert Cha and Frank Kung’s Vivo Capital holds the largest position in the company, with 2.60 million shares worth $85 million. 

2. Moderna, Inc. (NASDAQ:MRNA)

YTD Share Price Decline as of August 7: 43.76%

Number of Hedge Fund Holders: 40

Moderna, Inc. (NASDAQ:MRNA) is a biotech company developing treatments for autoimmune diseases, cardiovascular diseases, cancer, and other rare infectious diseases. On August 3, Moderna, Inc. (NASDAQ:MRNA) reported a Q2 GAAP loss per share of $3.62, which beat market expectations by $0.48. The company announced a revenue of $344 million, which dropped 92.8% year-over-year but exceeded by $38.44 million. Following this, TD Cowen and Deutsche Bank have downgraded Moderna, Inc. (NASDAQ:MRNA). Moderna, Inc. (NASDAQ:MRNA) is one of the worst performing biotech stocks in 2023. 

According to Insider Monkey’s first quarter database, a total of 40 hedge funds were bullish on Moderna, Inc. (NASDAQ:MRNA), compared to 52 in the prior quarter. Philippe Laffont’s Coatue Management held the largest position in the stock, with 6.5 million shares worth $1 billion. 

Baron Health Care Fund had this to say about Moderna, Inc. (NASDAQ:MRNA) in its Q1 2023 investor letter:

“Moderna, Inc. (NASDAQ:MRNA) is a leader in the emerging field of mRNA-based vaccines and therapeutics and was one of the three main producers of the COVID vaccine. Shares fell during the quarter. We believe as COVID shifts away from pandemic status and becomes an increasingly commercial market (rather than government funded), there is increasing investor uncertainty around what a booster market could look like, which is pressuring shares. Looking beyond COVID, we think Moderna has the potential to disrupt the biopharmaceutical industry, from infectious disease vaccines to oncology, and we remain shareholders.”

1. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)

YTD Share Price Decline as of August 7: 53.64%

Number of Hedge Fund Holders: 42

Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) focuses on the research, development, and commercialization of treatments for autoimmune and inflammatory diseases. On July 31, Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) reported a Q2 GAAP loss per share of $1.02 and a revenue of $94.9 million. The EPS beat market expectations by $0.30 and revenue outperformed consensus by $23.78 million. Despite this, Bank of America downgraded Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) on August 1, following safety concerns about its vision-loss medicine, Syfovre. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is one of the worst performing biotech stocks in 2023. 

According to Insider Monkey’s first quarter database, 42 hedge funds were bullish on Apellis Pharmaceuticals, Inc. (NASDAQ:APLS). In contrast, 38 hedge funds held a similar position in the company during the previous quarter. Kurt Von Emster’s VenBio Select Advisor held the largest stake in the company, with 11.1 million shares worth $732.8 million.

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