In this article, we discuss the 5 biotech stocks that investors are watching. If you want to read about some more biotech stocks, go directly to Investors are Watching These 10 Biotech Stocks.
5. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders: 45
Edwards Lifesciences Corporation (NYSE:EW) provides healthcare equipment for critical care. On April 26, the company posted earnings for the first quarter of 2022, reporting earnings per share of $0.60, beating analyst expectations by $0.03. The revenue over the period was $1.34 billion, up more than 9% compared to the revenue over the same period last year and beating estimates by $30 million. The firm guided full year sales for 2022 to around $6 billion against consensus estimates of $5.7 billion.
On May 17, Citi analyst Joanne Wuensch maintained a Buy rating on Edwards Lifesciences Corporation (NYSE:EW) stock and lowered the price target to $115 from $134, noting that market multiples were contracting due to inflation and slowing growth.
At the end of the first quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Edwards Lifesciences Corporation (NYSE:EW), the same as in the preceding quarter worth $2.6 billion.
In its Q4 2021 investor letter, Harding Loevner highlighted a few stocks and Edwards Lifesciences Corporation (NYSE:EW) was one of them. Here is what the fund said:
“Innovation can foster growth in Health Care fields other than drug discovery. Edwards Lifesciences Corporation (NYSE:EW) makes minimally invasive devices to treat heart disease or for critical care monitoring. Its transcatheter heart valve, SAPIEN, is the most-implanted aortic heart valve in the world. Having settled a lawsuit with Abbott over alleged patent infringement, Edwards Lifesciences Corporation (NYSE:EW) is now moving ahead with a newer product line called PASCAL to treat elderly or frail patients—for whom currently available treatments are ineffective—for mitral and tricuspid disease. PASCAL is the fruit of the company’s ongoing investment in research and development. Between PASCAL and its next-generation SAPIEN valve, the company expects to double its addressable market to approximately US$20 billion by 2028.”
4. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 53
Eli Lilly and Company (NYSE:LLY) develops and markets human pharmaceuticals. On June 21, the company announced that authorities in China had granted the approval for the expanded use of Tyvyt, a drug developed by the firm in collaboration with Innovent Biologics, for the treatment of esophagus cancer. This is the fifth approval for the drug in the Asian country that already allows the drug for the treatment of blood, lung and liver cancers. The approval was granted after positive data from a Phase-III trial of the drug.
On June 6, Mizuho analyst Vamil Divan maintained a Buy rating on Eli Lilly and Company (NYSE:LLY) stock with a price target of $356, identifying it as a top pick in the large cap pharma industry given the drug profile of the firm.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company (NYSE:LLY) with 1.6 million shares worth more than $485 million.
In its Q1 2022 investor letter, Baron Funds highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company with a diverse offering primarily focused on therapeutics. Performance was strong mostly due to consistent financial growth powered by its core diabetes (and future obesity) franchise, as well as the constant drumbeat surrounding the Alzheimer’s therapeutic market, of which Eli Lilly and Company (NYSE:LLY) has one of the three potential winning blockbuster candidates in Donanemab. We retain conviction in Eli Lilly given the company’s strong long-term growth outlook.”
3. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 65
Intuitive Surgical, Inc. (NASDAQ:ISRG) markets surgical equipment and accessories. The company is one of the leading names in the robotic surgical instrumentation market. In the post-pandemic market, the company has started posting strong revenue numbers as elective surgeries are restarted after being reduced significantly due to COVID-19. On June 19, the firm was placed among a basket of pharma stocks that were deemed “stable” for a volatile marketplace by Goldman Sachs analyst David Kostin.
On April 22, Raymond James analyst Lawrence Keusch maintained an Outperform rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) stock and lowered the price target to $330 from $334, lauding the earnings beat of the firm on procedure growth.
At the end of the first quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG), up from 63 the preceding quarter worth $4.2 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Intuitive Surgical, Inc. (NASDAQ:ISRG) was one of them. Here is what the fund said:
“Intuitive Surgical, Inc. (NASDAQ:ISRG), a maker of robotic instruments for soft tissue surgery, was another new health care addition. The market for soft tissue procedures is enormous, including those performed with the aid of the company’s DaVinci machines, whose three-dimensional imaging capabilities require smaller incisions, resulting in less nerve damage and bleeding and shorter patient stays. DaVinci machines are a $1 million-plus investment by hospitals that can be run continuously through the day, allowing for a greater number of procedures with less physician fatigue. Surgeons are trained on the device from medical school and residency on up. Combining the related training and supply chains, these purchases are very sticky. We see the opportunity for Intuitive Surgical, Inc. (NASDAQ:ISRG) to benefit from more indications for the devices, procedure growth, and greater sales in hospitals and surgical centers.”
2. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Abbott Laboratories (NYSE:ABT) is an Illinois-based healthcare company. In early June, the company announced that it was in the process of developing a new bio-wearable device that will continuously monitor glucose and ketone levels in one sensor. The firm has already obtained breakthrough device designation from authorities in the US in this regard and the trials for the device are expected in 2023. Per the firm, the new device will have the same size as the FreeStyle Libre 3 continuous glucose monitoring sensor.
On June 24, BTIG analyst Marie Thibault maintained a Buy rating on Abbott Laboratories (NYSE:ABT) stock and lowered the price target to $130 from $140, noting that the firm still offered solid fundamentals despite losing market value due to recession fears.
Among the hedge funds being tracked by Insider Monkey, Ohio-based investment firm Diamond Hill Capital is a leading shareholder in Abbott Laboratories (NYSE:ABT) with 6 million shares worth more than $721 million.
1. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 84
Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company. Reports suggest that the company is moving forward with a plan to purchase biotech company Seagen and the two parties will be meeting to further refine the deal in late June. BMO Capital claims the deal is clouded by questions around regulation and valuation. The stock has outperformed peers in the biotech industry over the past year, registering a more than 21% increase in share price since the beginning of 2022.
On April 12, Barclays analyst Carter Gould maintained an Overweight rating on Merck & Co., Inc. (NYSE:MRK) stock and raised the price target to $97 from $94, noting that the first quarter prints were “unlikely to disrupt the momentum of macro-driven rotation to larger cap biopharma”.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Merck & Co., Inc. (NYSE:MRK) with 9.7 million shares worth more than $800 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Merck & Co., Inc. (NYSE:MRK) was one of them. Here is what the fund said:
“Other pharma companies are providing solutions as well. Merck’s antiviral pill molnupiravir is less effective than Pfizer’s, but it will be a helpful alternative for patients who cannot take Pfizer’s due to drug-drug interactions. Merck & Co., Inc. (NYSE:MRK) is also helping to manufacture Johnson & Johnson’s COVID-19 vaccine, which has less stringent storage requirements than the mRNA vaccines do.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
