George Soros is known as a symbol of success in the financial markets because he does a better job than most people in choosing winning stocks. Therefore, if you are an investor, it would be advantageous to you to study the quarterly 13F filings for Soros Fund Management.
The 13F filing for the second quarter show that the Soros fund increased its holdings in Ionis Pharmaceuticals. It also got into new positions with the rare disease specialists BioMarin Pharmaceuticals and Alnylam Pharmaceuticals during the same time period. This fund has a history of choosing the best stocks in the pharmaceutical industry, so it would be worth your while to examine these three mid-cap biotech stocks to find out if you should purchase them too. Let’s see what we can find out!
The first drug that Ionis placed on the market was “Kynamro,” and it did not live up to its expectations. This drug consisted of RNA-targeted therapies, and they were not as safe as they had been promised to be. The story is entirely different for the drug Spinraza, the spinal muscular atrophy medication. The FDA approved this drug in December, and it has resulted in $203 million in revenue. Spinraza is the result of a joint venture between Ionis and Biogen, and it made it possible for Ionis to bring in $27.6 million in three months.
Spinraza is not the only product that Ionis has to offer the world. It has 37 other candidates that are ready to be tested, but it also has several drugs that are much farther along in the approval process. For example, Ionis’ wholly owned subsidiary Akcea Therapeutics recently applied to the FDA for approval of its cardiovascular drug volanesorsen. Approval for this medication may be delayed because there are some issues with low platelet counts, but Ionis is on its way to becoming a company that is marketing several different medications at the same time.
The main therapeutic target of Alynylam’s development platform is also RNA, and this makes it possible for this company to produce a varied list of drug candidates. These drugs are also similar to Ionis’ drugs in a way that is not advantageous to the company. The RNA therapies have caused unpleasant side effects to occur, and this has kept the medication from being introduced to the market. For example, one subject died while on an experimental treatment for hemophilia called “fitusiran.” This caused the company to also sideline the drug candidate revusiran because the company could not demonstrate that the drug’s risk-reward ratio would be in the patient’s favor.
Fortunately, the company has plans to resume clinical trials for fitusiran at the same time that its lead drug patisiran races toward its critical stages. Investors have been anticipating the release of patisiran, so they have been causing its price to go up. When patisiran is approved, investors are expecting the company’s revenues to triple. However, some analysts are more cautious because they think that the clinical data in the later stages will not be as promising because of questions about the safety of the drug.
BioMarin is the third option, but it is more expensive than the others. Although this is the case, that is not enough of a reason to run away from this mid-cap biotech stock. That’s because BioMarin is a master at introducing medicines that help small segments of the population and reaping the monetary benefits in the end.
Six of BioMarin’s drugs are on the market, and they are also waiting for the results of four other drugs that are in late-stage trials. Therefore, the company is expecting to increase its bottom line by 18 percent this year and 15 percent next year. With approval of vosoritide, BioMarin’s executives are expecting to see the drug turn into a serious money-making opportunity for the next 10 years. The result is that investors are taking these predictions seriously and putting their money into these stocks that are promising to increase their value over time.
These estimates are extremely ambitious, and all of the cards have to fall directly in the right places to make them happen. The problem is that drug trials are rarely completed without any stumbling blocks. If you believe that orphan drug stocks are your best option, then the best place to find them is with BioMarin since it has several medications on the market right now. In contrast, Alynylam and Ionis have not proven themselves yet even though both companies have received the highest appraisals in the industry.
Stay up to date on pharma stock news: Pfizer Inc. (NYSE:PFE) ratings during last week
About George Soros
George Soros has done something that no one else can say that he has done. He bet $10 billion against the British pound and gained $1 billion in one day in 1992. It grew to $2 billion after some time had passed. That’s how he became known as “the man who shorted the British pound.” After working as an analyst and an investment manager, he opened his own hedge fund and named it “Soros Fund Management.” Soros Fund Management turned into “Quantum Fund” and earned returns of more than 30 percent every year except for two time periods. During those two time periods, the Soros fund gained more than 100 percent of its value! Recently, George donated $18 Billion of his wealth to Open Society Foundations, a charitable organization he created in response to a Karl Popper book that resonated with him strongly.
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