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Corporate insiders sometimes trade based on material non-public information they have. Other times they have an edge because they know their companies and industries much better than almost all other investors. We believe that by imitating the investments of corporate insiders, investors are more likely to beat the market in the long term.

Below we compiled a list of healthcare stocks that insiders are bullish about recently. All companies have at least $5 billion market cap and were purchased by at least two insiders over the past three months. Insider trading data is from Insider Monkey and the market data is sourced from Finviz.

Ticker

Company

YTD Return

No. of Insiders

MRK

Merck & Co. Inc.

-2.30%

2

MDT

Medtronic, Inc.

-4.87%

3

VRX

Valeant Pharmaceuticals

56.84%

6

MYL

Mylan, Inc.

-12.40%

2

LIFE

Life Technologies Corporation

-27.78%

2

MTD

Mettler-Toledo International

8.59%

2

Merck & Co. Inc. (NYSE:MRK): Merck & Co., Inc. is a global health care company. MRK was purchased by two insiders over the past three months. Kenneth Frazier bought 32,000 shares at around $31.8 on August 15. Three days before that, Peter Kellogg also bought 15,800 shares around the same price. The stock is now trading at $33.89. It has a market cap of $105B, a P/E ratio of 23.3 and lost 2.30% since the beginning of this year. Ric Dillon invested $173 million in MRK shares.

Medtronic, Inc. (NYSE:MDT): Medtronic is engaged in research, design, manufacture and sale of products to alleviate pain, restore health and extend life. MDT was purchased by three insiders over the past three months. Jack Schuler bought 10,000 shares at $35.14 on September 1. Schuler also bought 25,000 shares in May this year at $40.7044 per share. Kendall Powell bought 3,000 shares at $35.20 on September 1 and Richard Anderson bought another 3,000 shares at $35.23 a day earlier. The stock is now trading at $34.24. It has a market cap of $36.3B, a P/E ratio of 11.98 and lost 4.87% since the beginning of this year. Ric Dillon and John Paulson also both invested about $200 million in MDT.

Valeant Pharmaceuticals International, Inc. (NYSE:VRX): Valeant is a multinational, specialty pharmaceutical company. VRX was purchased by six insiders over the past three months and lost 12.40% since the beginning of this year. The most recent purchase was from Harold Ronald Farmer, who bought 1,000 shares at $39.72 on September 12. Farmer also purchased 2,000 shares at $38.57 on August 19 and another 2,000 shares at around $38.6 on August 9 and 10. Brian Stolz, Rajiv Silva De, Michael Pearson, Ann Norma Provencio, and Berghuis Katharine Stevenson also bought 170,307 shares in total at around $40 per share in August. The stock is now trading at $41.55. It has a market cap of $13.2B and a P/E ratio of 211.29. John Griffin had $509 million invested in VRX. Andreas Halvorsen also invested over $200 million in VRX.

Mylan, Inc. (NASDAQ:MYL): Mylan is a generic and specialty pharmaceutical company. MYL was purchased by two insiders over the past three months and it returned -12.40% since the beginning of this year. Heather Bresch bought 5,000 shares at $19.21 on August 12. A day earlier, Robert Coury bought 5,000 shares at $17.99. Coury bought another 10,000 shares at $17.46 on August 10. The stock is now trading at $18.35. It has a market cap of $7.9B and a P/E ratio of 19.9. D. E. Shaw and John Paulson both had about $400 million of MYL shares.

Life Technologies Corporation (NASDAQ:LIFE): Life Technologies is a global life sciences company. LIFE was purchased by two insiders over the past three months and it lost 27.78% since the beginning of this year. Ora Pescovitz bought 550 shares in total at around $36.16 on August 22. On the same day, Mark Steven bought 5,000 shares at $36.2. The stock is now trading at $39.73. It has a market cap of $7.1B and a P/E ratio of 20.98. Larry Robbins invested $665 million in LIFE shares. John Paulson also had nearly $400 million LIFE stocks.

Mettler-Toledo International, Inc. (NYSE:MTD): Mettler-Toledo International Inc. is a supplier of precision instruments and services. MTD was purchased by two insiders over the past three months and it returned 8.59% since the beginning of this year. George Milne, director of the company, bought 1,000 shares at $143.14 on August 10. A day earlier, another director Martin Madaus also purchased 500 shares at $138.6. MTD is now trading at $160.49. It has a market cap of $5.2B and a P/E ratio of 21.27. Chuck Royce had $40 million invested in MTD shares.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 6 Healthcare Stocks Insiders Are Bullish About