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Do you like to follow smart money buying trends? If so, you may be interested in a screen we ran for a look at stocks currently favored by smart money institutional investors.

We began by screening the biotech industry for stocks that are rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

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. (click to enlarge)

Tool provided by Kapitall

Do you think these stocks are poised to outperform? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. Achillion Pharmaceuticals, Inc. (ACHN): Engages in the discovery, development, and commercialization of treatments for infectious diseases. Market cap at $632.39M, most recent closing price at $8.01. The stock is currently trading 20.88% above its 20-day moving average, 27.01% above its 50-day moving average, and 4.32% above its 200-day moving average. Net institutional purchases in the current quarter at 10.2M shares, which represents about 16.47% of the company's float of 61.93M shares.

2. Affymax, Inc. (AFFY): Engages in the development of drugs for the treatment of serious and life-threatening conditions. Market cap at $703.53M, most recent closing price at $19.44. The stock is currently trading 16.57% above its 20-day moving average, 26.02% above its 50-day moving average, and 72.08% above its 200-day moving average. Net institutional purchases in the current quarter at 4.1M shares, which represents about 13.18% of the company's float of 31.10M shares.

3. Alexion Pharmaceuticals, Inc. (ALXN): Engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. Market cap at $21.06B, most recent closing price at $109.06. The stock is currently trading 3.64% above its 20-day moving average, 6.3% above its 50-day moving average, and 24.35% above its 200-day moving average. Net institutional purchases in the current quarter at 12.0M shares, which represents about 6.31% of the company's float of 190.29M shares.

4. Jazz Pharmaceuticals plc (JAZZ): Develops and commercializes products for neurology and psychiatry primarily in the United States. Market cap at $2.79B, most recent closing price at $48.55. The stock is currently trading 3.91% above its 20-day moving average, 2.81% above its 50-day moving average, and 5.05% above its 200-day moving average. Net institutional purchases in the current quarter at 2.8M shares, which represents about 5.98% of the company's float of 46.80M shares.

5. Onyx Pharmaceuticals, Inc. (ONXX): Engages in developing therapies targeting the molecular mechanisms causing cancer in the United States and internationally. Market cap at $4.95B, most recent closing price at $75.96. The stock is currently trading 4.69% above its 20-day moving average, 6.28% above its 50-day moving average, and 51.99% above its 200-day moving average. Net institutional purchases in the current quarter at 6.7M shares, which represents about 10.98% of the company's float of 61.01M shares.

6. Threshold Pharmaceuticals Inc. (THLD): Engages in the discovery and development of drugs targeting the microenvironment of solid tumors for patients living with cancer. Market cap at $470.72M, most recent closing price at $8.54. The stock is currently trading 6.91% above its 20-day moving average, 12.77% above its 50-day moving average, and 57.05% above its 200-day moving average. Net institutional purchases in the current quarter at 5.8M shares, which represents about 13.17% of the company's float of 44.05M shares.

7. ViroPharma Inc. (VPHM): Engages in the development and commercialization of products that address serious diseases with a focus on products used by physician specialists or in hospital settings in the United States and internationally. Market cap at $1.91B, most recent closing price at $27.75. The stock is currently trading 4.18% above its 20-day moving average, 15.41% above its 50-day moving average, and 10.05% above its 200-day moving average. Net institutional purchases in the current quarter at 3.1M shares, which represents about 6.09% of the company's float of 50.89M shares.

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

Source: 7 Rallying Biotech Stocks Being Snapped Up By Hedge Funds