TipRanks
Billionaire Jim Simons takes on these two biotech stocks
Quant trade guru Jim Simons calls it a day. The mathematician and cryptologist is famous in the investment community for bringing his analytical eye to the world of the stock market, which has created both the amount of trading revolution and a personal fortune now estimated at more than $ 22 billion. It was a career with multifaceted success, and its innovations on Wall Street influenced the strategies of two successive generations of traders. Simons served as chairman of Renaissance Technologies before his 83rd birthday next month. However, Simons remains involved as a board member. On the way out, Simons invested new positions in two biotechnology stocks. Simons’ stock moves are a viable strategy for investors of all stripes. To get an idea of how good a strategy is, we opened up the TipRanks database and drew the details of these two names; It seems like the rest of the street is projecting a lot upside down. Let’s find out what they buy convincingly. Zogenix, Inc. (ZGNX) We start with Zogenix, a small-cap biotech company working on new therapies for the treatment of rare diseases. The company has two main products: Fintepla, which is FDA approved for use in the treatment of epilepsy caused by Dravet syndrome, and MT1621, which is in the middle trial as a treatment for Thymidine Kinase 2 deficiency (TK2d), ‘ a rare and often fatal metabolic disease in children. The company has experienced a total net sales of US products of $ 9.6 million since its launch in July 2020; of the total, $ 8.1 million was realized in 4Q20. On 31 December 2020, there were 550 patients with Dravet Syndrome enrolled in Fintepla programs. Also in December, the European Commission approved Fintepla for use, and the medicine introduced in Germany. Fintepla is currently being tested as a treatment for Lennox-Gastaut syndrome and other rare epileptic diseases to expand the patient base. Zogenix’s second drug candidate, MT1621, was acquired in 2019 from Modis Therapeutics. MT1621 is a possible treatment for TK2d, a rare and deadly disease in early childhood. The drug works through Deoxynucleoside substrate enhancement therapy, a new approach that has shown effectiveness in early phase studies. At this stage, Zogenix should complete a Phase 1 study of human renal PK, a non-clinical toxicity study in dogs, and genotoxicology / reproductive toxicity studies, and management has indicated that it intends to submit new drug application (NDA) to the FDA. . The firm’s firm position will attract investors – and Jim Simons bought more than 245,000 shares in the fourth quarter. His stake in the company is now worth more than $ 5 million. Analyst Serge Belanger, who deals with Zogenix for Needham, noted that the Fintepla launch in the US was a promising start. ” It appears that the trends at the end of 2020 for the REMS program and Fintepla aboard will continue until early 2021. It is expected that all patients receiving Fintepla as part of OLE trials in the US, by 1Q21 end on commercial products, ”Belanger wrote. For this purpose, Belanger ZGNX is considering a buy, and its price target of $ 48 implies a solid upward potential of 131% for the next 12 months. (To view Belanger’s record, click here. Overall, Wall Street seems to agree with Needham’s view that Zogenix is a stock worth buying. Analysts’ recent reviews have ranked 6 to 2 in favor of Buy versus Hold, which makes the consensus rating a strong buy, shares are priced at $ 20.74, and the average target of $ 47 indicates a 128% increase on the annual horizon. (See ZGNX shares analysis on TipRanks) Wave Life Sciences (WVE) The next stock we are looking at is Wave Life Sciences, which focuses on precision medicine and the design of oligonucleotides to safely deliver more effective, precisely targeted, therapeutic agents.The company has a pipeline of ten drug candidates, at different stages of development in the treatment of serious diseases, with the words “little or no treatment options.” Wave Life Sciences uses an integrated approach to develop new nucleic acid therapies. The approach uses rational design to counteract defects in genetic replication, providing more consistent therapeutic effects of drugs specifically targeted to specific diseases. The developmental program of Huntington’s disease is the most advanced. It is a severe hereditary neurodegenerative disorder, with symptoms usually between 30 and 50 years old, and worsens over time. The company’s two most advanced drug candidates, WVE-120101 and WVE-120102, are in Phase 1b / 2a trials, with reports on results expected by the end of this month. In addition, open-label extension trials (OLEs) are underway for patients outside the US. In addition to these two drug candidates, Wave has several programs that continue to treat other rare diseases. The pipeline contains potential treatments for ALS, Duchenne muscular dystrophy and various retinal diseases. These pipeline projects are all in preclinical stages. In the fourth quarter, Jim Simons’ Renaissance bought 235,620 shares in WVE, a significant buy that shows confidence in the company’s pipeline. At the current valuation, the stake – a new position for Simons – is worth $ 2.224 million. 5-star analyst Andrew Fein, of HC Wainwright, noted that Wave’s share performance this year largely depends on the results of the PRECISION HD-1 and HD-2 studies, and he believes there is reason for optimism. ‘[Our] positive view of the PRECISION studies stems from: (1) the selective target of either SNP1 or SNP2 inhibits the expression of mutant Huntington protein (mHTT), while wild-type HTT leaves largely intact, which may improve the safety profile compared to competitive therapies also target wild-type proteins …; (2) the new ASO modification chemistry is a compelling case as seen by data, which shows a significantly higher discount of transcripts compared to traditional approaches; (3) Wave’s intrathecal dosing strategy must overcome systemic inflammatory responses that occur in other programs; and (4) higher dosage groups should alleviate investors’ concerns about the effectiveness of competing programs, ”Fein said. Based on these studies, Fein maintains its Buy rating and its price target of $ 20. At the current level, the target indicates a 112% increase for the coming year. (To see Fein’s record, click here. In total, there are 5 reviews for WVE shares, including three Buy and 2 Hold, which make the analyst’s consensus a moderate buy. The average price target here is $ 17.80, which implies an upward unit of 84% of the share price of $ 9.76 (See WVE stock analysis on TipRanks) To find great ideas for biotechnology stocks trading at attractive valuations, visit TipRanks’ best stocks to buy , a newly introduced tool that unites all TipRanks shares Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to conduct your own analysis do before investing.