In this article, we discuss the top 10 stock picks of Samuel Isaly’s OrbiMed Advisors. If you want to skip our detailed analysis of Isaly’s history, investment philosophy, and hedge fund performance, go directly to Top 5 Stock Picks of Samuel Isaly’s OrbiMed Advisors.
Samuel Isaly graduated from Princeton University with an A.B. in Economics and completed his M.Sc. in Economics from the London School of Economics. He has worked as a pharmaceutical analyst at Chase Manhattan Bank, Merrill Lynch, Legg Mason, and S.G. Warburg during his career. Isaly founded OrbiMed Advisors in 1989. While at OrbiMed Advisors, Isaly was the portfolio manager of Worldwide Healthcare Trust Plc for 22 years.
OrbiMed Advisors looks to invest in companies offering biopharmaceuticals, medical devices, digital health, diagnostics, and healthcare services to help people live healthier, longer, and happier lives worldwide. The long-term purpose of the hedge fund is to manage a portfolio roughly split between large healthcare businesses and small-cap companies where the investment team feels that future growth is currently undervalued. In the third quarter of 2021, OrbiMed Advisors’ 13F public stock portfolio was valued at $9.10 billion, with a top 10 holdings concentration of 29.71%.
Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Inc. (NASDAQ:BIIB), and Thermo Fisher Scientific Inc. (NYSE:TMO), among others, are some of the most important holdings from Samuel Isaly’s stock portfolio in the third quarter of 2021.
Samuel Isaly’s hedge fund owns 287,600 shares of Gilead Sciences, Inc. (NASDAQ:GILD), worth over $20.09 million. In December, Mohit Bansal of Wells Fargo initiated coverage of Gilead Sciences, Inc. (NASDAQ:GILD) with an “Equal Weight” rating and a $72 price target.
Samuel Isaly, Founder of Orbimed Advisors
OrbiMed Advisors holds 234,200 shares in Biogen Inc. (NASDAQ:BIIB), worth over $66.28 million. This represents 0.72% of its Q3 portfolio. The hedge fund’s stake in the company increased by 248% in the third quarter of 2021. On January 3, Canaccord analyst Sumant Kulkarni lowered his price target on Biogen Inc. (NASDAQ:BIIB) to $335 from $390 and reiterated a “Buy” rating on the shares.
Samuel Isaly’s OrbiMed Advisors holds 110,300 shares of Thermo Fisher Scientific Inc. (NYSE:TMO), worth over $63.02 million, representing 0.69% of its Q3 portfolio. In December, Wells Fargo analyst Dan Leonard raised his price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $700 from $625 and maintained an “Equal Weight” rating on the shares.
Our Methodology
Here is a list of the top 10 stock picks of Samuel Isaly’s OrbiMed Advisors. We used Isaly’s 13F portfolio for Q3 2021 for this analysis. For each stock, we have mentioned the hedge fund sentiment, which was gathered from the 867 elite funds monitored by Insider Monkey in the third quarter of 2021.
Top Stock Picks of Samuel Isaly’s OrbiMed Advisors
10. Adagio Therapeutics, Inc. (NASDAQ:ADGI)
OrbiMed Advisors Stake Value: $227,399,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.49%
Number of Hedge Fund Holders: 12
Adagio Therapeutics, Inc. (NASDAQ:ADGI) is a biotech company specializing in researching, developing, and marketing antibody-based treatments for infectious diseases with pandemic potential. Adagio Therapeutics, Inc. (NASDAQ:ADGI) is a new arrival in Samuel Isaly’s Q3 portfolio, as his hedge fund bought about 5.38 million shares of the company, worth $227.40 million.
Adagio Therapeutics, Inc. (NASDAQ:ADGI) was downgraded to “Hold” from “Buy” by Jefferies analyst Michael Yee in December, with a price target of $10, down from $46. According to the analyst, the company’s lead antibiotic, namely ADG20, has reduced effectiveness against the omicron variant of COVID-19, implying that the next stages and development plans are questionable.
Overall, 12 hedge funds monitored by Insider Monkey were bullish on Adagio Therapeutics, Inc. (NASDAQ:ADGI) in the third quarter. The stakes of these funds are valued at $613 million.
Along with Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Inc. (NASDAQ:BIIB), and Thermo Fisher Scientific Inc. (NYSE:TMO), Adagio Therapeutics, Inc. (NASDAQ:ADGI) is one of the notable stocks from the portfolio of Samuel Isaly’s OrbiMed Advisors.
9. Edgewise Therapeutics, Inc. (NASDAQ:EWTX)
OrbiMed Advisors Stake Value: $231,482,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.54%
Number of Hedge Fund Holders: 14
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is a biopharmaceutical company focusing on the discovery, development, and commercialization of novel medicines for severe, uncommon muscular illnesses with unmet medical needs. For the fiscal third quarter of 2021, Edgewise Therapeutics, Inc. (NASDAQ:EWTX) reported a loss per share of $0.26, falling short of estimates by $0.04.
Among the hedge funds being tracked by Insider Monkey, OrbiMed Advisors is the leading shareholder of Edgewise Therapeutics, Inc. (NASDAQ:EWTX), with 13.94 million shares worth more than $231.48 million.
As of Q3 2021, 14 hedge funds have positions in Edgewise Therapeutics, Inc. (NASDAQ:EWTX), as compared to 15 funds in the previous quarter.
8. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
OrbiMed Advisors Stake Value: $242,933,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.66%
Number of Hedge Fund Holders: 46
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is a clinical-stage oncology firm focused on discovering new therapeutics. Analyst Evan Seigerman of BMO Capital commenced coverage of Mirati Therapeutics, Inc. (NASDAQ:MRTX) in November and rated it as “Outperform”, with a price target of $187.
Mirati Therapeutics, Inc. (NASDAQ:MRTX), in November, posted earnings for the third quarter. The company’s loss per share came in at $1.55, beating estimates by $1.47. In addition, revenue over the period gained 529.8% compared to the prior-year quarter, reaching $71.8 million, outperforming estimates by $70.39 million.
Mirati Therapeutics, Inc. (NASDAQ:MRTX) was in 46 hedge funds’ portfolios at the end of the third quarter of 2021. Comparatively, there were 55 hedge funds in our database with Mirati Therapeutics, Inc. holdings at the end of the previous quarter.
In its third-quarter 2021 investor letter, Baron Funds mentioned Mirati Therapeutics, Inc. (NASDAQ:MRTX). Here is what the fund said:
“We initiated a position in Mirati Therapeutics, Inc., a clinical-stage biotechnology company developing novel therapeutics targeting the genetic and immunologic drivers of cancer. The company’s lead drug, known as Adagrasib, targets a protein called KRAS that is a central node in driving tumor growth. We think Adagrasib has a best-in-class profile in a multibillion-dollar drug category. Currently, Amgen has a competing drug on the market, but clinical data on Adagrasib presented at the recent European Society of Medical Oncology meeting gives us confidence that Mirati’s drug has better attributes including residence time on target, efficacy response rates, longer duration of treatment, combinability opportunities, and blood brain barrier penetration.”
7. Boston Scientific Corporation (NYSE:BSX)
OrbiMed Advisors Stake Value: $253,120,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.78%
Number of Hedge Fund Holders: 47
Boston Scientific Corporation (NYSE:BSX) is a company that develops, manufactures, and markets medical devices for use in interventional medicine. In December, Truist analyst David Rescott boosted his price target on Boston Scientific Corporation (NYSE:BSX) to $53 from $52 and kept a “Buy” rating on the stock.
Farallon Capital is the biggest stakeholder of Boston Scientific Corporation (NYSE:BSX) as of the third quarter of 2021, increasing its stake in the company by 11%, holding 14 million shares worth almost $607.57 million.
Boston Scientific Corporation (NYSE:BSX) saw a decrease in hedge fund sentiment in Q3 2021. The number of long hedge fund positions declined to 47 at the end of the third quarter, compared to 51 positions in the previous quarter.
In its second-quarter 2021 investor letter, Artisan Partners mentioned Boston Scientific Corporation (NYSE:BSX). Here is what the fund said:
“Among our top contributors (includes) Boston Scientific. Shares of Boston Scientific were volatile throughout most of 2020 as the pandemic drove significant drops in elective medical procedures, though our longer-term constructive view and belief elective medical procedures would bounce back post pandemic prompted us to add to our position. We have been rewarded with shares rebounding this year alongside a recovery in elective medical procedures. Longer-term, we believe the company’s investments in higher growth categories will drive revenue growth to the higher end of its peer group with rising margins.”
6. Ikena Oncology, Inc. (NASDAQ:IKNA)
OrbiMed Advisors Stake Value: $255,945,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.81%
Number of Hedge Fund Holders: 8
Ikena Oncology, Inc. (NASDAQ:IKNA) is a clinical-stage biotechnology business focused on finding and developing patient-directed, biomarker-driven cancer medicines. In December, H.C. Wainwright analyst Robert Burns initiated coverage of Ikena Oncology, Inc. (NASDAQ:IKNA), rating the stock as “Buy” and assigning a price target of $25 to the shares.
OrbiMed Advisors started building its position in Ikena Oncology, Inc. (NASDAQ:IKNA) in the first quarter of 2021 and holds 11.90 million shares in the company, valued at $255.95 million as of Q3 2021. The stock represents 2.81% of the hedge fund’s 13F portfolio. OrbiMed Advisors is the most significant stakeholder of Ikena Oncology, Inc. (NASDAQ:IKNA).
Overall, 8 hedge funds monitored by Insider Monkey were bullish on Ikena Oncology, Inc. (NASDAQ:IKNA) in the third quarter. The stakes of these funds are valued at $208.82 million.
Just like Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Inc. (NASDAQ:BIIB), and Thermo Fisher Scientific Inc. (NYSE:TMO), Ikena Oncology, Inc. (NASDAQ:IKNA) is one of the notable stocks to consider as per Samuel Isaly’s OrbiMed Advisors’ 13F portfolio in Q3.
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Disclosure: None. Top 10 Stock Picks of Samuel Isaly’s OrbiMed Advisors is originally published on Insider Monkey.
