Billionaire Israel Englander pours money into 2 “Strong Buy” shares
After the wild ride of 2020, where is the market going from here? Great strides have been made in the COVID-19 vaccine race, but the short-term picture remains unclear, which is being blurred by the virus resurgence and the Capitol Hill standoff. At times like these, the major investors can serve as a source of inspiration, namely billionaire Israel “Izzy” Englander. Who exactly is an Englishman? The legend, who started trading stocks in high school, began her career as an intern at the investment firm Oppenheimer. She later acquired a seat on the American stock exchange, where he acted as a floor broker, dealer and specialist. In 1989, Englander founded the Millennium Management hedge fund together with Ronald Shear. As evidence of his stellar track record, the guru took the $ 35 million used to set up the fund and turned it into over $ 40 billion in assets under management. With his personal net worth of $ 7.2 billion, it’s no wonder Wall Street is careful when Englander takes a step. With that in mind, our focus shifted to Millennium’s most recent 13F filing, which reveals the stocks the fund bought in the third quarter. The TipRanks database recorded two tickers in particular and showed that both names achieve an analyst consensus of “Strong Buy”. In addition, the analyst community sees enormous upside potential for everyone. G1 Therapeutics (GTHX) With a deep understanding of cancer biology and extensive drug discovery experience, G1 Therapeutics develops therapies that could potentially improve the lives of patients battling the deadly disease. Before an important regulatory decision is made, the Street slams this table on the table. In the third quarter, Englander and Millennium acquired a new stake in GTHX. Needham’s Chad Messer, who pulls the trigger for 555,937 shares, stands at $ 6,421,000. Needham’s customers tell their customers that they have high hopes ahead of the February 15 PDUFA appointment for trilaciclib, whose therapy is aimed at improving outcomes for cancer patients treated with chemotherapy. The NDA of the therapy was accepted in August for priority review based on results from three randomized clinical trials in small cell lung cancer (SCLC). The FDA stated that no Advisory Council (AdComm) meeting is planned. As Trilaciclib Messer, the first CDK4 / 6 inhibitor used to treat chemo-induced bone marrow toxicity, argues that the absence of an AdComm “makes sense”. He said, “We believe this reflects the Agency’s appreciation for the unmet need, convenience with the CDK4 / 6 class safety profile and trilaciclib efficacy profile.” GTHX will also focus on trilaciclib’s inclusion in NCCN Guidelines. It should also be noted that a pivotal Phase 3 trial evaluating the candidate for metastatic colorectal cancer (mCRC) is scheduled to begin by the end of the year. In addition to the good news, GTHX and its partner, Boehringer Ingelheim, are preparing for the commercial launch of trilaciclib, with the companies covering approximately 2,500 treating oncologists and providing educational materials on how to use trilaciclib before treatment and the benefits of maintaining multiple lines. If this is not enough, then the rintodestrant (its Selective Estrogen Receptor Degrader (SERD)) is not enough. In the development for the treatment of estrogen receptor-positive (ER +) breast cancer plus palbociclib combination study, registration was completed earlier than expected, which Messer believes reflects “the attractiveness of a fully oral treatment regimen during a global pandemic”. With a data display planned for the second quarter of 2021, the analyst assumes that a “positive display could prove to be a key value driver”. In line with its optimistic approach, Messer repeated a Buy recommendation and a price target of USD 74, which indicates an upside potential of 417%. (To see Messer’s track record, click here.) Do other analysts agree? You are. Only buy reviews have been given in the past three months, to be precise 3. So the message is clear: GTHX is a strong buy. Given the average target price of $ 59, stocks could rise 312% over the next year. (See GTHX stock analysis on TipRanks) Epizym (EPZM) Epizym is also fighting in the fight against cancer and other serious diseases and aims to find new therapies through novel epigenetic drugs. While the company is facing headwinds with its recent product launch, several members of the street believe that big things are in store. Millenium bought 461,258 shares in the third quarter, the purchase reflecting a new position for the hedge fund. The value of the stake is $ 5,503,000. 5-star analyst David Kidney Garden, who writes for Wedbush, points out that the pandemic has limited visits from oncologists and therefore Tazverik (the company’s treatment for follicular lymphoma) sales were lower than expected. He points out that “the pandemic is shifting the starting curve to an incidence model rather than a prevalence model as there is a limited pool of patients available if they delay office visits,” with patients waiting for their treatment Seek treatment for symptoms of progression. Although the launch is virtual and doctors’ awareness is high, doctors refuse to prescribe a new drug without personally examining the patient. However, Kidney Garden remains optimistic about the therapy: “Despite this headwind, Tazverik has almost reached our estimates and is gaining market share, including the first sales in the second row. We expect second line sales to begin in 2021 and have gradually added them to our launch curve, ”the analyst explained. When it comes to therapy time, Kidney Garden believes it is too early to draw any conclusions. However, he emphasizes the fact that the duration of the response was relatively long and the patients in the registration study were treated as they progressed. “In addition, the headwind against switching therapies becomes a tailwind for Tazverik maintenance once a patient receives therapy. This will likely be a more significant contributor to 2H21’s sales and the potential outperformance of sales, ”he added. Kidney Garden summed it up: “We believe that investors are too negative about Tazverik’s potential and that patience should be rewarded. “Kidney Garden takes the cops’ side and reiterates an outperform rating and a target price of $ 27. This goal conveys his confidence in EPZM’s ability to grow 122% over the next year. (To see Kidney Garden’s track record, click here.) Most other analysts agree with Kidney Garden’s assessment. 3 buys and 1 hold results in a strong buy consensus rating. With an average target price of $ 23.25, the upside potential is 91%. (See EPZM Stock Analysis on TipRanks.) To find great ideas for trading healthcare stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.