Hedge Funds Love These 6 Outperforming Drugmakers

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 |  Includes: AKRX, AMPE, AMRN, HZNP, MAPP, OREX
by: Kapitall

Do you like to follow the buying trends of smart money investors? We ran a screen to find drugmaker stocks currently in favor by hedge fund managers.

We began by screening the drugmaker industry for stocks that have outperformed the market over the last quarter, with quarterly performance above 10%.

We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing 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 into the future.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.

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

1. Horizon Pharma, Inc. (HZNP): Develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. Market cap at $278.03M. Price at $8.25. Performance over the last quarter at 91.86%. Net institutional purchases in the current quarter at 7.4M shares, which represents about 29.19% of the company's float of 25.35M shares.

2. Orexigen Therapeutics, Inc. (OREX): Focuses on the development of pharmaceutical product candidates for the treatment of obesity. Market cap at $391.70M. Price at $5.78. Performance over the last quarter at 43.04%. Net institutional purchases in the current quarter at 9.8M shares, which represents about 16.28% of the company's float of 60.18M shares.

3. Akorn, Inc. (AKRX): Engages in the manufacture and marketing of diagnostic and therapeutic pharmaceutical products, hospital drugs, and injectable pharmaceuticals in the United States and internationally. Market cap at $1.56B. Price at $16.38. Performance over the last quarter at 35.26%. Net institutional purchases in the current quarter at 10.1M shares, which represents about 14.4% of the company's float of 70.12M shares.

4. MAP Pharmaceuticals, Inc. (MAPP): Focuses on the development and commercialization of inhalation therapies for patients suffering from migraine. Market cap at $497.00M. Price at $16.21. Performance over the last quarter at 16.70%. Net institutional purchases in the current quarter at 1.8M shares, which represents about 7.03% of the company's float of 25.61M shares.

5. Amarin Corporation plc (AMRN): Focuses on developing treatments for cardiovascular diseases. Market cap at $2.13B. Price at $15.46. Performance over the last quarter at 38.41%. Net institutional purchases in the current quarter at 8.1M shares, which represents about 6.35% of the company's float of 127.52M shares.

6. Ampio Pharmaceuticals, Inc. (AMPE): Develops drugs for metabolic, eye, kidney, inflammation, and central nervous system diseases. Market cap at $167.95M. Price at $5.39. Performance over the last quarter at 55.33%. Net institutional purchases in the current quarter at 813.7K shares, which represents about 5.05% of the company's float of 16.11M 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.