John Paulson, the billionaire who at the height of the 2007 credit bubble made his fortune from betting against subprime mortgages has hit the jackpot again. As a major investor in Horizon Therapeutics, Paulson is in line for a $500 million payday, given the biotech is to be acquired by Amgen in a $27.8 billion deal.
To bring Horizon under the fold, Amgen will pay $116.50 per share in cash. This is 267% higher price than the average of $31 per share paid by Paulson, who has been a Horizon investor since 2017 and holds around 6.1 million HZNP shares.
If you’ve made it your investing strategy to follow Paulson’s moves, you stand to gain handsomely too. If you haven’t, here’s a chance to assess some of Paulson’s other two big holdings.
We’ve dug up the details on the pair and have also run the tickers through the TipRanks database to get a feel for Street sentiment toward these names. So, let’s see what they make of Paulson’s holdings and find out why he has made the pair his top stocks right now.
Bausch Health Companies (BHC)
The first big Paulson holding we’ll look at is Canadian global pharma company Bausch Health. The multinational healthcare player sells generic and branded drugs, with eye health, gastrointestinal diseases and dermatology being some of its main focal points.
Amongst its bestselling products you can find Arestin (minocycline HCl), an antibiotic utilized in procedures associated with periodontitis, insomnia medication Ativan (lorazepam), chest pain treatment Cardizem and depression therapy Wellbutrin XL (bupropion hydrochloride).
Despite boasting a long list of commercially available products, BHC stock has had a torrid time of it this year having touched down at 25-year lows. The shares have shed 72% in 2022, with the slide kicking off in May following a very disappointing Q2 report.
The latest financial statement, for Q3, was not much to shout about, either. Revenue declined by 2.8% year-over-year to $2.05 billion while EPS of $0.76 fell short of the $0.78 consensus estimate. For the outlook, the company lowered its guided revenue…