RA Capital’s Top Q2 Performers; Predicts Big Things Ahead for Pharma Stocks

Ardelyx Inc. (NASDAQ:ARDX)

– Shares Owned by RA Capital Management (as of June 30): 2.30 Million

– Value of RA Capital Management’s Holding (as of June 30): $17.88 Million

– Q2 Return: 12.4%

RA Capital Management LLC added 1.73 million shares of Ardelyx Inc. (NASDAQ:ARDX) to its existing position in the company during the April-to-June period, finishing the second quarter with 2.30 million shares valued at $17.88 million. The clinical-stage biopharmaceutical company focused on the discovery and development of minimally-systemic therapeutic drugs for the treatment of gastrointestinal and cardio-renal diseases has seen the value of its stock plunge by 42% since the beginning of the year. The company’s lead product candidate, called tenapanor, is currently being studies in two pivotal Phase 3 clinical studies in patients suffering with constipation-predominant irritable bowel syndrome, or IBS-C. Fresh estimates show that approximately 4.4 million people in the United States suffer with IBS-C, with roughly 1.00 million being already diagnosed with it. There are an additional 6.6 million IBS-C patients in Europe and 3.4 million in Japan. James E. Flynn’s Deerfield Management reported ownership of 275,000 shares of Ardelyx Inc. (NASDAQ:ARDX) in its latest 13F.

AveXis Inc. (NASDAQ:AVXS)

– Shares Owned by RA Capital Management (as of June 30): 1.34 Million

– Value of RA Capital Management’s Holding (as of June 30): $50.92 Million

– Q2 Return: 39.6%

The crossover fund manager owned 1.34 million shares of AveXis Inc. (NASDAQ:AVXS) at the end of the second quarter, a mere 22,200 shares less than at the end of the first quarter. The position was worth $50.92 million on June 30 and made up 7.1% of RA Capital’s entire portfolio. Peter Kolchinsky’s firm disclosed a new position in AveXis in its 13F for the first three months of the year. In February, the clinical-stage gene therapy company focused on developing treatments for patients suffering from rare and life-threatening neurological genetic diseases completed its initial public offering by issuing and selling 4.75 million shares at a public offering price of $20.00 per share. The value of AveXis shares have more than doubled since the IPO. The company’s initial product candidate is AVXS-101, a gene therapy product candidate currently in a Phase 1 clinical trial for the treatment of spinal muscular atrophy Type 1, the leading genetic cause of infant mortality. Adage Capital Management, founded by Phillip Gross and Robert Atchinson, has nearly 638,000 shares of AveXis Inc. (NASDAQ:AVXS) among its holdings as of June 30.

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