Published on 22 Nov 2023 on Insider Monkey via Yahoo Finance

Billionaire Seth Klarman’s Biotech Stock Picks

In this article, we discuss billionaire Seth Klarman’s biotech stock picks. To skip the detailed analysis of the biotech industry, Seth Klarman’s investment philosophy, and Baupost Group’s performance and Q3 bets, go directly to Billionaire Seth Klarman’s Top 4 Biotech Stock Picks. 

Biotechnology is the technology segment that utilizes cellular and biomolecular processes for the betterment of human lives. Humans have been using biotechnology for a long time. However, the sector picked up its pace in the aftermath of COVID-19. According to our previous report, venture capitalist (VC) firms invested $52 billion in biotech companies between 2019 and 2021. Additionally, biotech firms raised $34 billion in 2021, compared to $16 billion in 2020.

The biotechnology sector’s market size was estimated to be around $1.22 trillion at the end of 2022 and is expected to grow at a CAGR of 12.8% to $3.21 trillion by 2030. In 2022, biopharmaceuticals represented 40% of all the global drug sales at $421 billion. Nevertheless, biotech is a high-risk investment due to factors like the success or failure of clinical trials and FDA approval. On the other hand, the growing trend in the sector has allowed some of the companies’ stocks to grow massively. The best-performing biotech stocks such as Soleno Therapeutics, Inc. (NASDAQ:SLNO), MoonLake Immunotherapeutics (NASDAQ:MLTX), and Ambrx Biopharma Inc. (NASDAQ:AMAM) have gained 1,175.34%, 416.51%, and 372.46% year-to-date on November 21, respectively. Moreover, analysts are still keeping Strong Buy ratings on these three stocks, according to TipRanks. For Soleno Therapeutics, Inc. (NASDAQ:SLNO), Guggenheim has a Buy rating with a $40 price target, which shows a 43.21% upside to the company’s current stock price at the time of writing. Here is what Chief Executive Officer of Soleno Therapeutics, Inc. (NASDAQ:SLNO), Anish Bhatnagar, M.D., said on November 7: