Mylan Inc. (NASDAQ:MYL) has made a couple of headlines recently. Wednesday morning, the company announced a deal have the worldwide rights to develop and commercially manufacture a new Long-acting muscarinic antagonist (LAMA) and hopes to be able to keep patent protection on the formulation through 2029. The company said it would submit phase IIB testing of the product to the FDA for approval soon. And last week, MYL stock received an upgrade and a new price target of $50 (from $42) by JP Morgan.
What does this say for the company and the stock? Mylan Inc. (NASDAQ:MYL) investors should be aware of an increase in activity from the world’s largest hedge funds in recent months.
Hedge fund activity in Mylan Inc. (NASDAQ:MYL)
In preparation for this quarter, 40 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 14-percent increase from one quarter earlier. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.
According to hedge-fund intelligence website Insider Monkey, John Paulson’s Paulson & Co had the most valuable position in Mylan Inc. (NASDAQ:MYL), worth close to $463.4 million, amounting to 3 percent of its total 13F portfolio. On Paulson & Co’s heels is OrbiMed Advisors, led by Samuel Isaly, holding a $192.7-million position; the fund has 3.4 percent of its 13F portfolio invested in the stock. Remaining members of the smart money with similar optimism include Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management and Stephen DuBois’ Camber Capital Management.
As one would reasonably expect, key hedge funds have been driving this bullishness. North Tide Capital, managed by Conan Laughlin, established the most outsized position in Mylan Inc. (NASDAQ:MYL). North Tide Capital had $53.4 million invested in the company at the end of the quarter. James E. Flynn’s Deerfield Management also initiated a $29.7-million position during the quarter. The other funds with brand new MYL positions are Joseph Edelman’s Perceptive Advisors, Anand Parekh’s Alyeska Investment Group, and Israel Englander’s Millennium Management.
How have insiders been trading Mylan Inc. (NASDAQ:MYL)?
Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, Mylan Inc. (NASDAQ:MYL) has seen zero unique insider purchases and two insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Mylan Inc. (NASDAQ:MYL). These stocks are Ligand Pharmaceuticals Inc. (NASDAQ:LGND), Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), Akorn, Inc. (NASDAQ:AKRX), Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), and Actavis plc Ordinary Shares (NYSE:ACT). This group of stocks belongs to the generic drug industry and their market caps are closest to MYL’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Ligand Pharmaceuticals Inc. (NASDAQ:LGND)||14||3||6|
|Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA)||25||0||6|
|Akorn, Inc. (NASDAQ:AKRX)||14||0||0|
|Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP)||25||0||1|
|Actavis plc Ordinary Shares (NYSE:ACT)||54||0||20|
Thanks to the recent bull run of hedge fund interest, Mylan Inc. (NASDAQ:MYL) has become the No. 2 choice of hedge funds, still far behind Actavis plc Ordinary Shares (NYSE:ACT), however. MYL is also not generating much insider interest, as there has been noteworthy activity not only in Actavis plc Ordinary Shares, but also in Ligand Pharmaceuticals Inc. (NASDAQ:LGND).