Wednesday, May 30, 2012

What a biotech hedge fund thinks of coming regulatory decisions.

Required reading:

1. from Adam Feuerstein of 22 Biopharma Stocks With Breakout Potential in 2012 detailing regulatory news likely to break through the remainder of 2012.

2. Baker Bros portfolio activity for 1Q2012. Baker Brothers Advisors is arguably the leading small/mid-cap biotech investor. You can see their entire portfolio here.

So what do these two articles have in common? It's pretty interesting to see what Baker is doing in the names that have events still to come in 2012.

Observations from Baker's holdings:

-it looks like they don't really like any small cap names that have been around for a long time (Geron, Nektar, etc.) The only exception is Arqule.

-they REALLY believe in Auxilium, going from $0 to $124M in holdings.

-though Baker has positions in 55 companies, one third of their fund is invested in 4 names: Seattle Genetics, Incyte, Genomic Health, and Pharmacyclics.

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