What Makes Prometheus Biosciences (RXDX) an Attractive Investment Choice?

What Makes Prometheus Biosciences (RXDX) an Attractive Investment Choice?

Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The first quarter was difficult for the fund, as it failed to participate in the broader market rally and declined 3.69% compared to the 3.27% decline for the benchmark Russell 3000 Health Care Index and a 7.50% increase for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Health Care Fund highlighted stocks like Prometheus Biosciences, Inc. (NASDAQ:RXDX) in the first quarter of 2023 investor letter. Headquartered in San Diego, California, Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a clinical-stage biotechnology company. On May 17, 2023, Prometheus Biosciences, Inc. (NASDAQ:RXDX) stock closed at $192.94 per share. One-month return of Prometheus Biosciences, Inc. (NASDAQ:RXDX) was -0.47%, and its shares gained 564.85% of their value over the last 52 weeks. Prometheus Biosciences, Inc. (NASDAQ:RXDX) has a market capitalization of $9.225 billion.

Baron Health Care Fund made the following comment about Prometheus Biosciences, Inc. (NASDAQ:RXDX) in its Q1 2023 investor letter:

“We added to our position in Prometheus Biosciences, Inc. (NASDAQ:RXDX), a clinical stage biotechnology company. Prometheus’ lead product candidate, PRA023, is a monoclonal antibody that has been shown to block a target called TL1A that is associated with intestinal inflammation and fibrosis. In December 2022, the company reported promising Phase 2 clinical trial results, suggesting the potential for PRA023 to be a novel treatment for ulcerative colitis and Crohn’s disease. The company plans to advance PRA023 into Phase 3 clinical trials for ulcerative colitis and Crohn’s disease in 2023. The company is also studying PRA023 as a treatment for Systemic-Sclerosis-associated Interstitial Lung Disease and plans to announce a fourth potential indication for PRA023 in 2023 .We believe PRA023 has blockbuster potential. Prometheus also has a pipeline of earlier stage product candidates. On April 16, Merck issued a press release announcing its agreement to acquire Prometheus for $200 per share in cash.”

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Prometheus Biosciences, Inc. (NASDAQ:RXDX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Prometheus Biosciences, Inc. (NASDAQ:RXDX) at the end of the fourth quarter which was 25 in the previous quarter.

We discussed Prometheus Biosciences, Inc. (NASDAQ:RXDX) in another article and shared the list of best mid-cap healthcare stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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