In this article, we will discuss the top 10 biotech stocks to buy according to Jeremy Green’s Redmile Group. If you want to skip our detailed analysis of Green’s history, investment philosophy performance, you can go directly to the Top 5 Biotech Stocks to Buy According to Jeremy Green’s Redmile Group.
Jeremy Green is the founder of Redmile Group, LLC. Jeremy Green hails from Paris and moved to the US in 2004. Before moving to the US, Green was the head of the European health care research team and served as the Managing Director at Citigroup. He is currently the Chairman of Prince’s Trust USA and has served on the board of directors of Alder Biopharmaceuticals. Jeremy Green’s net worth is estimated at around $3 billion.
After moving to the United States, Jeremy Green co-founded Steeple Capital and worked as an analyst at Andor Capital. In 2007, Jeremy Green founded the Redmile Group, which focuses mainly on the health care sector.
Redmile Group is based in San Francisco, California, and does venture investments, private equity, and post IPO equity investments. In the third quarter 13F filings, the firm reported $5.73 billion in managed securities. The firm’s largest holding is Fate Therapeutics, Inc. (NASDAQ:FATE), with 12.96 million shares worth $768 million.
LivaNova PLC (NASDAQ:LIVN), Amicus Therapeutics, Inc. (NASDAQ:FOLD) and Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) are some of the top stocks in the portfolio of Redmile Group as of the end of the third quarter.
Our Methodology
Here is our list of top 10 biotech stocks to buy according to Jeremy Green’s Redmile Group portfolio. These were picked from the Redmile Group portfolio in the third quarter of 2021.
Top 10 Biotech Stocks to Buy According to Jeremy Green’s Redmile Group
10. Celldex Therapeutics, Inc. (NASDAQ:CLDX)
Redmile Group’s Stake Value: $164.3 million
Percentage of Redmile Group’s 13F Portfolio: 2.86%
Number of Hedge Fund Holders: 27
Celldex Therapeutics, Inc. (NASDAQ:CLDX) is a biopharmaceutical company specializing in immunology to treat various diseases. According to filings for the third quarter, Redmile Group owned 3,043,298 shares in Celldex Therapeutics, Inc. (NASDAQ:CLDX) at the end of September 2021, representing 2.86% of the fund’s portfolio.
On September 17, Jefferies analyst Chris Howerton initiated coverage of Celldex Therapeutics, Inc. (NASDAQ:CLDX) with a Buy rating and a price target of $66, citing the various successful developments of treatments and an upcoming possible upside opportunity.
9. Beam Therapeutics Inc. (NASDAQ:BEAM)
Redmile Group’s Stake Value: $171.8 million
Percentage of Redmile Group’s 13F Portfolio: 2.99%
Number of Hedge Fund Holders: 20
Beam Therapeutics Inc. (NASDAQ:BEAM) utilizes biotechnology to produce genetic medicines. The company has piqued the interest of many investors as it announced in November 2021 that it received permission from the U.S. Food and Drug Administration (FDA) to begin human trials for an ex vivo base-editing treatment for thalassemia and sickle cell anemia.
Among the hedge funds being tracked by Insider Monkey, Catherine Wood’s fund, ARK Investment Management, holds the largest stake in Beam Therapeutics Inc. (NASDAQ:BEAM) with 6.84 million shares worth $595.3 million, representing 1.42% of the portfolio.
On October 19, SVB Leerink analyst Rick Bienkowski initiated coverage of Beam Therapeutics Inc. (NASDAQ:BEAM) with an Outperform rating and price target of $117.
Baron Funds mentioned Beam Therapeutics Inc. (NASDAQ:BEAM) in its first-quarter 2021 investor letter. Here is what the letter said:
“Beam Therapeutics Inc. is a biotechnology company pioneering a novel technology called base editing, which allows for individual base pairs (the letters of DNA) to be modified. Shares fell along with other biotechnology stocks driven by a sudden rise in treasury yields. Early-stage biotechnology stocks are particularly sensitive to interest rates because their cash flows are further in the future. We believe we are entering into a phase of significant advancement for the gene editing field that will eventually lead to curative therapies, and we think Beam has a unique platform technology.”
8. LivaNova PLC (NASDAQ:LIVN)
Redmile Group’s Stake Value: $173.5 million
Percentage of Redmile Group’s 13F Portfolio: 3.02%
Number of Hedge Fund Holders: 32
LivaNova PLC (NASDAQ:LIVN) is a London-based company involved in the development, production, and selling of medical devices and systems.
In the third quarter of 2021, 32 hedge funds in the database of Insider Monkey held skates worth $1.14 billion in LivaNova PLC (NASDAQ:LIVN), down from 36 in the previous quarter worth $901.54 million.
On November 3, Piper Sandler analyst Adam Maeder maintained an Overweight rating on LivaNova PLC (NASDAQ:LIVN) stock and raised the price target from $100 to $105, expressing enthusiasm and confidence regarding the company’s pipeline initiatives.
Diamond Hill Capital, an investment management firm, mentioned LivaNova PLC (NASDAQ:LIVN) in its third-quarter 2021 investor letter. Here is what it said:
“Our health care holdings were negative in aggregate, but outpaced index peers, which boosted relative performance along with our below-benchmark positioningOn an individual holdings’ basis, we exited global medical technology company LivaNova as shares approached our estimate of intrinsic value.”
7. The Beauty Health Company (NASDAQ:SKIN)
Redmile Group’s Stake Value: $194.35 million
Percentage of Redmile Group’s 13F Portfolio: 3.38%
Number of Hedge Fund Holders: 39
The Beauty Health Company (NASDAQ:SKIN) is a California-based beauty health company that deals in producing and offering products and solutions concerning enhancement and maintenance of the health and beauty of the skin.
According to the filings of the third quarter of 2021, Redmile Group owned 7.48 million shares in the company at the end of September 2021, worth $194.35 million, representing 3.38% of the portfolio.
On November 12, Piper Sandler analyst Erinn Murphy maintained an Overweight rating on The Beauty Health Company (NASDAQ:SKIN) stock with a price target of $33.
Baron Funds mentioned The Beauty Health Company (NASDAQ:SKIN) in its third-quarter investor letter. Here is what it said:
“The Beauty Health Company is an innovative skincare and aesthetics company providing consumers the benefits of a professional medical treatment with the experience of a consumer brand. Shares outperformed in the third quarter following better-than-expected earnings results and the announcement of two new retail partnerships with Nordstrom and Ulta, where the company expects to sell an aesthetics device that customers can use in their home. We continue to be attracted to the company’s assetlight, recurring revenue business model and see the company doubling its revenues organically over the next few years. We also believe that Beauty Health will boost shareholder value over time through accretive acquisitions.”
6. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Redmile Group’s Stake Value: $198.6 million
Percentage of Redmile Group’s 13F Portfolio: 3.46%
Number of Hedge Fund Holders: 31
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is a biotechnology company that develops medicines for rare metabolic diseases. The firm often works in collaboration with Nationwide Children’s Hospital, University of Pennsylvania, and GlaxoSmithKline.
Among the hedge funds being tracked by Insider Monkey, Perceptive Advisors is the leading shareholder in Amicus Therapeutics, Inc. (NASDAQ:FOLD) with 26.56 million shares worth $253.64 million, representing 3.68% of the portfolio.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is one of the top stocks in the portfolio of Redmile Group, along with LivaNova PLC (NASDAQ:LIVN) and Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH).
An investment management firm, Carillon Tower Advisers, mentioned Amicus Therapeutics, Inc. (NASDAQ:FOLD) in its first-quarter 2021 investor letter. Here is what it said:
“Amicus Therapeutics is a biotechnology company focused on discovering, developing, and delivering novel high-quality medicines for people living with rare metabolic diseases. The firm’s shares slumped after it reported disappointing results in the phase three trial for its drug to be used in the treatment of late-onset Pompe disease (LOPD). Unfortunately, the trial data did not generate statistical significance in the primary endpoint.”
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Disclosure: None. Top 10 Biotech Stocks to Buy According to Jeremy Green’s Redmile Group is originally published by Insider Monkey.
