Top Biotech Picks of Best-Performing Hedge Fund of 2015

#3 Sarepta Therapeutics Inc (NASDAQ:SRPT)

– Shares Owned by Perceptive Advisors (as of December 31): 2.24 million

– Value of Holding (as of December 31): $86.45 million

Perceptive Advisors reduced its stake in Sarepta Therapeutics Inc (NASDAQ:SRPT) by 20% during the fourth quarter. Shares of the company have slid by more than 60% so far this year, mainly after the U.S. Food and Drug Administration (FDA) declined BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)’s new drug application for its Duchenne muscular dystrophy (DMD) drug. Since Sarepta Therapeutics Inc (NASDAQ:SRPT) is developing its own DMD drug, ‘Eteplirsen’, investors feared that the FDA might reject it as well. Eteplirsen was reviewed by the FDA on January 22 and although the agency was expected to give its decision on February 26, it announced that it would require more time to review the drug and extended the date to May 26. On February 23, noted biotech analysts Adam Feuerstein published an article suggesting that there is ‘hope’ for Sarepta Therapeutics to receive a favorable ruling for ‘Eteplirsen’ from the FDA. In his interview with Bloomberg, Mr. Edelman said:

“Sarepta is a very controversial name where very few people believe it will be approved this year. There’s good reason for some skepticism, but we think it will be approved. Right now, that stock price reflects an almost overwhelming expectation that it won’t be approved.”

#2 Neurocrine Biosciences, Inc. (NASDAQ:NBIX)

– Shares Owned by Perceptive Advisors (as of December 31): 2.5 million

– Value of Holding (as of December 31): $141.21 million

Amid a 42% rise registered by Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s stock during the fourth quarter, Perceptive Advisors reduced its stake in the company by 16%. Shares of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) have lost 34% so far this year. For the fourth quarter, the company reported a loss of $0.34 per share, compared to a loss of $0.26 posted for the same quarter of the previous year. For the full year, the company delivered a loss of $1.05 per share, versus a loss of $0.81 registered in 2014. Following the earnings release, analysts at Cowen and Company reiterated their ‘Buy’ rating and $65 price target on the stock. Donald Chiboucis‘ Columbus Circle Investors increased its stake in Neucrine by 39% to 640,417 shares during the October-December period.

#1 Amicus Therapeutics, Inc. (NASDAQ:FOLD)

– Shares Owned by Perceptive Advisors (as of December 31): 15.24 million

– Value of Holding (as of December 31): $147.82 million

Though its stock plummeted by 44% and Perceptive Advisors increased its stake by only 6% during the fourth quarter, Amicus Therapeutics, Inc. (NASDAQ:FOLD) remained the fund’s largest equity holding going into 2016. Shares of Amicus Therapeutics, Inc. (NASDAQ:FOLD) are trading nearly 34% in the red year-to-date. The company came out with its fourth quarter financial numbers on February 26, declaring a per share loss of $1.21 per share, whereas analysts had projected a loss of $0.31. On February 23, analysts at JPMorgan Chase & Co. reiterated their ‘Buy’ rating on the stock, but lowered the price target to $15 from $18, which now represents a potential upside of around 130% from the stock’s current levels. Alan Frazier‘s Frazier Healthcare Partners was among the hedge funds that initiated a stake in Amicus Therapeutics during the fourth quarter and it owns nearly 3 million shares of the company as of December 31.

Disclosure: None