The Best Healthcare Stock Ideas Of HealthInvest Partners AB

– Shares Owned by HealthInvest (as of September 30): 316,430

– Value of HealthInvest’s Shares (as of September 30): $22.44 Million

– Percentage of HealthInvest’s Public Equity Portfolio (as of September 30): 13.27%

HealthInvest is quite bullish on LifePoint Health Inc (NASDAQ:LPNT), which it has held since January 2012. Not only did the investment firm up its stake by 51% during the third quarter, in its October investor letter, it declared that it added a substantial amount of shares to its holding in October as well. HealthInvest cited LifePoint’s cheap valuation at just 8-times free cash flow (FCF) and its entrenched positions in its rural markets, where it faces little competition. LifePoint Health Inc (NASDAQ:LPNT) took a big dip in October after fellow healthcare provider Community Health Systems (NYSE:CYH) released weak preliminary third quarter figures, which may have been the moment HealthInvest bought up more shares. The stock has since made up most of those losses.

2. Pfizer Inc. (NYSE:PFE)

– Shares Owned by HealthInvest (as of September 30): 761,000

– Value of HealthInvest’s Shares (as of September 30): $23.90 Million

– Percentage of HealthInvest’s Public Equity Portfolio (as of September 30): 14.14%

Pfizer Inc. (NYSE:PFE) falls from the top spot in HealthInvest’s portfolio to second, following a 10% cut to the position by the Swedish firm. The $205 billion pharmaceutical giant has had a turbulent year, most notably in the past two months as the broader market has experienced upheaval and the healthcare sector (and drug pricing in particular) has come under intense scrutiny. Pfizer Inc. (NYSE:PFE)’s portfolio of drugs includes some of the most well-known in the world, including Xanax, Viagra, and Lyrica. However, it’s beginning to struggle with the loss of exclusivity of some of its drugs, with Celebrex and Lipitor sales falling this year after Pfizer lost exclusivity on them, and there hasn’t been much in the way of major successes to replace them. 85 investors that we follow held Pfizer in their portfolios on June 30, though they held just 2.30% of its shares in total. Billionaire Ken Fisher of Fisher Asset Management owns 31.93 million shares as of September 30.

1. Gilead Sciences, Inc. (NASDAQ:GILD)

– Shares Owned by HealthInvest (as of September 30): 249,300

– Value of HealthInvest’s Shares (as of September 30): $24.48 Million

– Percentage of HealthInvest’s Public Equity Portfolio (as of September 30): 14.48%

Gilead Sciences, Inc. (NASDAQ:GILD) overtook Pfizer as the top healthcare stock in HealthInvest’s portfolio by the end of the third quarter. While the fund only boosted its stake in Gilead by 3% during the third quarter, as with LifePoint, it revealed also making a substantial purchase of Gilead shares in October. The fund’s investor letter cited Gilead’s blockbuster Hepatitis C drugs, which should only become more profitable after the FDA’s liver damage warning on competitor AbbVie Inc. (NYSE:ABBV)’s Viekira Pak. Shares trade at 9-times FCF and have a dividend yield of 1.68%. Gilead Sciences, Inc. (NASDAQ:GILD) was held by 84 investors in our database on June 30.

Disclosure: None