BAKER BROS. ADVISORS LP Buys 2, Sells 3 in 3rd Quarter

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Nov 15, 2022
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BAKER BROS. ADVISORS LP recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Baker Bros. Advisors is a private hedge fund sponsor that is based out of New York City. The company was established in 2000 by Julian Baker and Felix Baker, who continues to have an active role in the company today acting as its co-managing members. Julian Baker has a business background from Harvard and Felix Baker has a PhD in Immunology from Stanford. The company currently has 25 employees with 11 of them being investment advisory professionals or researchers. Baker Bros. Advisors currently falls into the category of catering to less than 10 clients. The firm utilizes a fundamental driven approach to make its investment decisions, emphasizing life sciences companies. The company holds its investments usually for three years, although its more successful investments are held for longer. Baker Bros. Advisors invests almost exclusively in the health care sector, with a much lesser degree of assets allocated in the industrials sector. The firm’s top holdings currently include Pharmacyclics Inc., which alone makes up almost a fifth of its total asset allocations, Incyte Corporation, Synageva Biopharma Corporation, Seattle Genertics Inc., Salix Pharmaceuticals Inc., Acadia Pharmaceuticals Inc., and Biomarin Pharmaceuticals Inc., with its top ten holdings making up more than three quarters of its total holdings. Baker Bros. Baker Bros. Advisors does not believe in diversifying its portfolio, instead focusing on specific companies that it has deemed to be good holdings and placing concentrated positions in their securities that can generate significant returns in the long term. The company has a current market value of over $12 billion, investing almost all of its total available assets. Advisors’s market value has been increasing significantly over time, growing from its $5 billion market valuation just two years prior in 2013 to well over twice that amount today. Baker Bros. Advisors currently provides its products and services to a variety of university foundations, and families.

As of the latest 13F report, the guru’s equity portfolio contained 113 stocks valued at a total of $15.23Bil. The top holdings were SGEN(42.16%), INCY(15.82%), and BGNE(10.33%).

According to GuruFocus data, these were BAKER BROS. ADVISORS LP’s top five trades of the quarter.

Otonomy Inc


BAKER BROS. ADVISORS LP reduced their investment in NAS:OTIC by 4,994,871 shares. The trade had a 0% impact on the equity portfolio. During the quarter, the stock traded for an average price of $0.0984.

On 11/15/2022, Otonomy Inc traded for a price of $0.103 per share and a market cap of $5.66Mil. The stock has returned -95.35% over the past year.

There is insufficient data to calculate the stock’s financial strength and profitability ratings.

In terms of valuation, Otonomy Inc has a price-book ratio of 0.18, a EV-to-Ebitda ratio of 0.33 and a price-sales ratio of 49.50.

argenx SE


BAKER BROS. ADVISORS LP reduced their investment in NAS:ARGX by 839,398 shares. The trade had a 1.81% impact on the equity portfolio. During the quarter, the stock traded for an average price of $370.49.

On 11/15/2022, argenx SE traded for a price of $372.75 per share and a market cap of $20.86Bil. The stock has returned 23.82% over the past year.

GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 3 out of 10.

In terms of valuation, argenx SE has a price-book ratio of 6.95, a EV-to-Ebitda ratio of -19.97 and a price-sales ratio of 160.50.

The price-to-GF Value ratio is 0.25, earning the stock a GF Value rank of 2.

Akero Therapeutics Inc


During the quarter, BAKER BROS. ADVISORS LP bought 2,250,000 shares of NAS:AKRO for a total holding of 2,368,378. The trade had a 0.5% impact on the equity portfolio. During the quarter, the stock traded for an average price of $15.3.

On 11/15/2022, Akero Therapeutics Inc traded for a price of $44.91 per share and a market cap of $2.08Bil. The stock has returned 71.71% over the past year.

GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 1 out of 10.

In terms of valuation, Akero Therapeutics Inc has a price-book ratio of 6.05 and a EV-to-Ebitda ratio of -12.90.

Rhythm Pharmaceuticals Inc


During the quarter, BAKER BROS. ADVISORS LP bought 1,937,640 shares of NAS:RYTM for a total holding of 6,062,702. The trade had a 0.31% impact on the equity portfolio. During the quarter, the stock traded for an average price of $18.6.

On 11/15/2022, Rhythm Pharmaceuticals Inc traded for a price of $26.9 per share and a market cap of $1.49Bil. The stock has returned 100.38% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 1 out of 10.

In terms of valuation, Rhythm Pharmaceuticals Inc has a price-book ratio of 5.26, a EV-to-Ebitda ratio of -4.13 and a price-sales ratio of 80.58.

Legend Biotech Corp


The guru sold out of their 856,658-share investment in NAS:LEGN. Previously, the stock had a 0.27% weight in the equity portfolio. Shares traded for an average price of $46.94 during the quarter.

On 11/15/2022, Legend Biotech Corp traded for a price of $52.53 per share and a market cap of $8.81Bil. The stock has returned 7.19% over the past year.

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 1 out of 10.

In terms of valuation, Legend Biotech Corp has a price-book ratio of 18.60, a EV-to-Ebitda ratio of -24.55 and a price-sales ratio of 66.38.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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