Viking Global Investors leader Andreas Halvorsen (Trades, Portfolio) disclosed he established a 5.5% stake in Eidos Therapeutics Inc. (EIDX, Financial) on June 22.
According to GuruFocus real-time picks, Halvorsen, who picks stocks based on his understanding of the business' fundamentals, management team and cyclical and secular industry trends, invested in 1.9 million shares of Eidos for an average price of $21.90 per share, giving the holding 0.26% portfolio space.
The San Francisco-based clinical-stage biopharmaceutical company, which went public on June 20, has a market cap of $752.1 million; its shares were trading around $21 on Tuesday, up 3.35%. Since its initial public offering, the stock has fallen from its opening day closing price of $23.12.
GuruFocus estimates Halvorsen has lost approximately 4% on the investment so far. No other gurus have positions in the stock.
About the company
Eidos Therapeutics focuses on developing treatments for diseases caused by transthyretin amyloidosis, which is, according to the U.S. National Library of Medicine, a progressive condition characterized by the buildup of abnormal deposits of a protein called amyloid in the body’s organs and tissues.
The company says on its website that there are currently no Food and Drug Administration-approved treatments for this condition. It is hoping to change that with AG10, a novel therapeutic that targets the disease by stabilizing transthyretin, a transport protein secreted by the liver and choroid plexus.
Valuation
GuruFocus rated Eidos’ financial strength 5 out of 10 and its profitability and growth 2 out of 10.
While the company has no debt, GuruFocus warns its Sloan ratio of -34.23% indicates it has poor earnings quality. Further, its negative returns underperform the majority of its competitors.
Portfolio
Managing $25 million in assets, the Greenwich, Connecticut-based hedge fund’s portfolio, which is composed of 59 holdings, is largely invested in the technology sector, followed by financial services and health care.
Other biotech stocks Halvorsen is invested in are Biomarin Pharmaceutical Inc. (BMRN, Financial), Jazz Pharmaceuticals PLC (JAZZ, Financial), AnaptysBio Inc. (ANAB, Financial), Abeona Therapeutics Inc. (ABEO, Financial), Deciphera Pharmaceuticals Inc. (DCPH, Financial), AveXis Inc. (AVXS, Financial), Editas Medicine Inc. (EDIT, Financial) and aTyr Pharma Inc. (LIFE, Financial).
In 2017, Halvorsen was ranked the eighth-highest-earning hedge fund manager in the world, recording $26 billion in net gains since inception.
Disclosure: No positions.
