5 Biotech Stocks George Soros Is Buying
Nov 22, 2016 23:01:58 GMT
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Post by gutset on Nov 22, 2016 23:01:58 GMT
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Company Shares Purchased in Q3 Quarter Position Was Initiated
Acadia Pharmaceuticals 17,645 Q3 2016
Amgen 3,506 Q3 2016
Biogen 1,994 Q3 2016
BioMarin 5,734 Q3 2016
Opko Health 59,837 Q3 2016
Data source: whalewisdom.com.
Opko's stock could heat up in 2017
Opko Health is a highly diversified healthcare company with multiple irons in the fire. But the company's near-term value proposition can arguably be distilled down the success -- or failure -- of its newly approved vitamin D prohormone, Rayaldee, indicated as a treatment for secondary hyperparathyroidism.
The big picture issue at play here is that Rayaldee's addressable market has been estimated to be as large as $12 billion per year -- although some skeptics have suggested otherwise, predicting that the drug's sales will peak at around $500 million. Regardless, this new drug should turn out to be a key growth driver for the company moving forward. The Street, after all, is forecasting Opko's top line to rise by nearly 16% in 2017, based primarily on Rayaldee's projected commercial performance.
Having said that, Opko Health will probably remain cash-flow-negative next year and may even need to raise capital sometime soon to fund its ongoing operations. While cash flow problems shouldn't necessarily be a deal breaker for investors in this case, this issue is likely a big reason why the company's shares are only trading at four times its 2017 estimated revenue.
Are any of these biotech stocks screaming buys right now?
Amgen, BioMarin, and Opko Health are all arguably worth a deeper dive based on their longer-term value propositions. But Acadia and Biogen still have some serious work to do to lower their risk profiles moving forward. All in all, these Q3 Soros biotech buys seem to me to be best suited for a watch list, as none of them qualify as outright screaming buys right now.
Company Shares Purchased in Q3 Quarter Position Was Initiated
Acadia Pharmaceuticals 17,645 Q3 2016
Amgen 3,506 Q3 2016
Biogen 1,994 Q3 2016
BioMarin 5,734 Q3 2016
Opko Health 59,837 Q3 2016
Data source: whalewisdom.com.
Opko's stock could heat up in 2017
Opko Health is a highly diversified healthcare company with multiple irons in the fire. But the company's near-term value proposition can arguably be distilled down the success -- or failure -- of its newly approved vitamin D prohormone, Rayaldee, indicated as a treatment for secondary hyperparathyroidism.
The big picture issue at play here is that Rayaldee's addressable market has been estimated to be as large as $12 billion per year -- although some skeptics have suggested otherwise, predicting that the drug's sales will peak at around $500 million. Regardless, this new drug should turn out to be a key growth driver for the company moving forward. The Street, after all, is forecasting Opko's top line to rise by nearly 16% in 2017, based primarily on Rayaldee's projected commercial performance.
Having said that, Opko Health will probably remain cash-flow-negative next year and may even need to raise capital sometime soon to fund its ongoing operations. While cash flow problems shouldn't necessarily be a deal breaker for investors in this case, this issue is likely a big reason why the company's shares are only trading at four times its 2017 estimated revenue.
Are any of these biotech stocks screaming buys right now?
Amgen, BioMarin, and Opko Health are all arguably worth a deeper dive based on their longer-term value propositions. But Acadia and Biogen still have some serious work to do to lower their risk profiles moving forward. All in all, these Q3 Soros biotech buys seem to me to be best suited for a watch list, as none of them qualify as outright screaming buys right now.
