In this article, we discuss the top 5 biotech stocks to buy according to Jeremy Green’s Redmile Group. If you want to read our detailed analysis of Green’s history and hedge fund performance, go directly to the Top 10 Biotech Stocks to Buy According to Jeremy Green’s Redmile Group.
5. ADC Therapeutics SA (NYSE:ADCT)
Redmile Group’s Stake Value: $204.5 million
Percentage of Redmile Group’s 13F Portfolio: 3.56%
Number of Hedge Fund Holders: 6
ADC Therapeutics SA (NYSE:ADCT) is a Switzerland-based biotechnology company involved in drug discovery and development for solid and hematological cancers.
On September 7, Cantor Fitzgerald analyst Brian Cheng maintained an Overweight rating on ADC Therapeutics SA (NYSE:ADCT) stock with a price target of $46.
According to the third quarter filings of 2021, Redmile Group owned 7.52 million shares of ADC Therapeutics SA (NYSE:ADCT) worth $204.5 million at the end of September 2021.
4. Argenx SE (NASDAQ:ARGX)
Redmile Group’s Stake Value: $220.6 million
Percentage of Redmile Group’s 13F Portfolio: 3.84%
Number of Hedge Fund Holders: 28
Argenx SE (NASDAQ:ARGX) is a biopharmaceutical company known for pipelining therapeutic solutions that utilize anti-bodies, and it is done with the company’s discovery platform called Simple Antibody. In November 2021, one of the focus drugs of the firm, called Efgartigimod, received orphan status from the FDA.
Among the hedge funds tracked by Insider Monkey, Julian Baker and Felix Baker’s placement agency, Baker Bros. Advisors, holds the most significant stake in Argenx SE (NASDAQ:ARGX) with 1.11 million shares worth $338.10 million, representing 1.48% of the fund’s portfolio.
Artisan Partners, an investment management firm, mentioned Argenx SE (NASDAQ:ARGX) in its quarter-two investor letter. Here is what it said:
“Argenx is a Dutch biotechnology company developing antibodybased therapies for autoimmune diseases and cancer. Commercial preparations are underway for the company’s FcRn drug efgartigimod, which is used to treat patients with severe autoimmune diseases. Discussions with health insurance payers have been positive, and the manufacturing/supply chain is well-positioned. Argenx appears to be not only first-in-class (a first mover) but also the best-inclass asset in a high value and competitive field of FcRn drugs. First-inclass drugs typically take the majority of market share, and with a best-in-class profile, Argenx could solidify a dominate market position.”
3. IGM Biosciences, Inc. (NASDAQ:IGMS)
Redmile Group’s Stake Value: $225.3 million
Percentage of Redmile Group’s 13F Portfolio: 3.92%
Number of Hedge Fund Holders: 13
IGM Biosciences, Inc. (NASDAQ:IGMS) operates as a clinical-stage biotechnology company that manufactures IgM antibodies to be used in different therapeutic solutions. The firm, previously known as Palingen, Inc., is in a license agreement for different antibody agents for the SARS-CoV-2 virus with AvantGen Inc.
On November 5, Wedbush analyst Robert Driscoll upgraded the rating from Neutral to Outperform on IGM Biosciences, Inc. (NASDAQ:IGMS) stock with a price target of $82, citing the valuation after the selloff.
According to the filings of the third quarter, Redmile Group owned 3.42 million shares in IGM Biosciences, Inc. (NASDAQ:IGMS) worth $225.25 million, representing 3.92% of the fund’s portfolio.
2. Allakos Inc. (NASDAQ:ALLK)
Redmile Group’s Stake Value: $225.7 million
Percentage of Redmile Group’s 13F Portfolio: 3.93%
Number of Hedge Fund Holders: 15
Allakos Inc. (NASDAQ:ALLK) is a California-based publicly traded and clinical-stage biopharmaceutical company that develops therapeutic treatments that are antibody-based and treat allergic and inflammatory diseases.
Among the hedge funds being tracked by Insider Monkey, 15 funds held stakes in Allakos Inc. (NASDAQ:ALLK) worth $378.21 million at the end of the third quarter, up from 12 funds having stakes worth $344.51 million in the previous quarter. Redmile Group decreased its activity in the company by 4% in the third quarter.
As per the filings of the third quarter, Redmile Group owned 2.13 million shares in Allakos Inc. (NASDAQ:ALLK) worth $225.7 million, representing 3.93% of the portfolio.
1. Fate Therapeutics, Inc. (NASDAQ:FATE)
Redmile Group’s Stake Value: $768 million
Percentage of Redmile Group’s 13F Portfolio: 13.39%
Number of Hedge Fund Holders: 36
Fate Therapeutics, Inc. (NASDAQ:FATE) is a biopharmaceutical clinical-stage company that develops new and advanced cellular immunotherapies to treat cancer and immune disorders. The firm works to produce improved cell therapies by using its proprietary iPSC product platform.
On November 8, Citi analyst Yigal Nochomovitz upgraded the rating from Neutral to Buy on Fate Therapeutics, Inc. (NASDAQ:FATE) stock and lowered the price target from $94 to $87.
According to Insider Monkey’s database of 867 funds, 36 hedge funds have stakes in Fate Therapeutics, Inc. (NASDAQ:FATE) worth $2.1 billion at the end of the third quarter, down from 40 funds having stakes worth $2.767 billion in the last quarter.
Fate Therapeutics, Inc. (NASDAQ:FATE) is the biggest investment in Redmile Group’s portfolio. As of the end of the third quarter, the fund owned 12.96 million shares in the company worth $768 million, comprising 13.39% of the portfolio.
You can also take a look at the Top 10 Stock Picks of Joe Huber’s Huber Capital Management and Top 10 Stock Picks of Leon Lowenstein’s Lionstone Capital Management.
