9 High-Growth Biotech Stocks Being Bought Up By Hedge Funds

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 |  Includes: AMRS, ARIA, BMY, CBPO, EXAS, IDIX, MNK, REGN, VVUS
by: Kapitall

If you're interested in adding some growth to your portfolio, we ran a screen on the biotech industry keeping this idea in mind.

We began by screening US-traded stocks of the biotech industry for those with high growth prospects, with 5-year projected EPS growth above 20%.

We then screened these names to find those with bullish sentiment from the smart money, with significant net institutional purchases over the last quarter (net institutional purchases at least 5% of share float).

This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these names will perform as well as hedge fund managers expect? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Amyris Biotechnologies Inc. (AMRS): Offers renewable compounds for a variety of markets. Market cap at $217.16M. Price at $3.68. 5-year projected EPS growth at 21.00%. Net institutional purchases in the current quarter at 5.2M shares, which represents about 29.8% of the company's float of 17.45M shares.

2. Idenix Pharmaceuticals Inc. (IDIX): Engages in the discovery and development of drugs for the treatment of human viral and other infectious diseases in the United States and Europe. Market cap at $971.54M. Price at $8.84. 5-year projected EPS growth at 29.00%. Net institutional purchases in the current quarter at 13.0M shares, which represents about 19.7% of the company's float of 65.99M shares.

3. Ariad Pharmaceuticals Inc. (ARIA): Focuses on the discovery, development, and commercialization of small-molecule drugs for the treatment of cancer. Market cap at $2.50B. Price at $15.07. 5-year projected EPS growth at 25.00%. Net institutional purchases in the current quarter at 27.9M shares, which represents about 18.24% of the company's float of 152.98M shares.

4. Exact Sciences Corporation (EXAS): Focuses on developing a molecular diagnostic screening technology for the early detection and prevention of colorectal pre-cancer and cancer. Market cap at $574.76M. Price at $9.59. 5-year projected EPS growth at 25.00%. Net institutional purchases in the current quarter at 5.2M shares, which represents about 9.95% of the company's float of 52.24M shares.

5. China Biologic Products, Inc. (CBPO): Engages in the research, development, manufacturing, and sale of plasma-based pharmaceutical products. Market cap at $221.44M. Price at $8.79. 5-year projected EPS growth at 30.00%. Net institutional purchases in the current quarter at 647.0K shares, which represents about 9.24% of the company's float of 7.00M shares.

6. Amylin Pharmaceuticals, Inc. (AMLN): Engages in the discovery, development, and commercialization of drug candidates for the treatment of diabetes, obesity, and other diseases. Market cap at $3.81B. Price at $23.46. 5-year projected EPS growth at 50.40%. Net institutional purchases in the current quarter at 8.4M shares, which represents about 6.3% of the company's float of 133.39M shares.

7. VIVUS Inc. (VVUS): Engages in the development and commercialization of therapeutic products for underserved markets in the United States. Market cap at $2.25B. Price at $21.95. 5-year projected EPS growth at 29.70%. Net institutional purchases in the current quarter at 3.2M shares, which represents about 5.4% of the company's float of 59.31M shares.

8. Regeneron Pharmaceuticals, Inc. (REGN): Develops, and commercializes pharmaceutical products for the treatment of serious medical conditions in the United States. Market cap at $11.37B. Price at $118.42. 5-year projected EPS growth at 25.00%. Net institutional purchases in the current quarter at 3.6M shares, which represents about 5.04% of the company's float of 71.44M shares.

9. Questcor Pharmaceuticals, Inc. (QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $2.61B. Price at $39.50. 5-year projected EPS growth at 41.00%. Net institutional purchases in the current quarter at 3.0M shares, which represents about 5.02% of the company's float of 59.75M shares.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

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