Acadia and Halozyme
Last year, the Bakers made a significant bet on Acadia Pharma (ACAD) when the stock was selling for under $2 per share. On November 27, 2012, the company reported positive data results for its drug pimavanserin, which is designed to treat Parkinson’s disease psychosis (PDP). The news prompted a huge rally in the stock that has mostly continued to this day. Since PDP is a serious unmet need, the speculation continues to swell around Acadia, and eventual FDA approval—which could come in 2015—would further rally the stock, perhaps even 100% or higher from its current level.
The Baker Brothers are up well over 2500% in Acadia since their initial investment.
Perhaps the most interesting of their buys in 2013 could be Halozyme (HALO). Halozyme engages in the research, development, and commercialization of human enzymes. Its research focuses on human enzymes that transiently modify tissue under the skin to facilitate the delivery of injected drugs and fluids, or to alter abnormal tissue structures for clinical benefit.
Along with a large increase in Acadia shares, the Bakers have recently more than doubled their initial investment in Halozyme and it has paid off, as the stock has more than tripled in 2013.
Halozyme has several catalysts yet to come in the short term, and at stockmatusow, we feel the stock could be a double gainer in 2014, which will further add to the Baker Brothers gain they have already enjoyed in 2013.