The global coronavirus pandemic has introduced extreme volatility to the market. After peaking in February, the S&P 500 is now down 26% YTD and continues to see significant volatility on a daily basis.
As investors continue to grow concerned regarding the economic impact of the coronavirus, they’re starting to turn towards professionals to help guide them through this difficult period.
One of these professionals is Hal Mintz — a biotech and healthcare guru who once managed BAM Capital and is considered a trustworthy source for picking stocks.
Mintz now runs Sabby Capital and has grown its portfolio to over $360 million by focusing primarily on healthcare stocks.
With that in mind, here are three buy-rated biotech stocks that Sabby Capital recently added to its portfolio.
Biotech Stock #1: Zosano Pharma Corporation
First is Zosano Pharma Corporation (NASDAQ: ZSAN), a company that focuses on developing a safe and fast-acting solution for drug administration. Sabby Capital purchased over 3.5 million shares of ZSAN for over $2.3 million, giving the hedge fund nearly a 10% stake in the biotech company.
Maxim analyst Anthony Vendetti believes Zosano has good long-term growth potential thanks largely due to the company’s Qtrypta therapy for migraines.
Vendetti stated, “The acceptance of the NDA for Qtrypta by the FDA represents another positive step towards bringing an innovative therapy for migraine sufferers to market, and we believe that the capital raises get ZSAN closer to the PDUFA goal date of October 20, 2020, a potentially transformative date for the company. We are bullish on the opportunity for its Adhesive Dermally Applied Microarray (ADAM) technology.”
Vendetti gave the stock a “buy” rating and set a price target of $2.00.
Stock #2: Biocept, Inc.
Mintz’s hedge fund also added 9 million shares of Biocept, Inc. (NASDAQ: BIOC) to its portfolio, giving Sabby Capital a 9.71% stake in the company.
Biocept specializes in developing innovative diagnostic solutions using liquid biopsy blood tests which may be able to provide important information to doctors and cancer patients.
A recent study supports the use of these liquid biopsy tests as well as the switch blocker technology, which is “designed to suppress amplification of wild-type targets, without suppressing mutant sequences containing even one single nucleotide variant (SNV),” as stated by Maxim Group’s Jason McCarthy.
It’s also important to note that the EGFR, BRAF, and KRAS gene mutations examined by the aforementioned study are found in many types of cancers and that two existing therapies for these mutations, Tagrisso and Mekinist, generated a combined $4.3 billion in 2019.
Stock #3: Heat Biologics, Inc.
Last is Heat Biologics, Inc. (NASDAQ: HTBX), a company that uses its proprietary T-cell Activation Platform (TCAP) to create therapies that help cancer patients’ immune systems to defend against cancer cells.
Sabby Capital recently purchased 4.3 million shares of Heat Biologics at $0.35 per share, giving Mintz’s firm a 7.49% stake in the company.
Heat Biologics also recently announced that it is launching a coronavirus vaccine program through its subsidiary Zolovax. Maxim Group’s Jason McCarthy indicated that the company’s technology has significant potential in terms of fighting the coronavirus.
Heat Biologics’ stock is up 82% since February, and McCarthy maintained his “buy” rating and $1 price target for the stock.
Article By: Connor Beam