WEALTH on WIRE

Let us look at the years Top Biotech Stocks.  In 2010, small and mid caps along with some selected large caps should perform better. Overall sentiment towards stock market and particularly biotech remains negative, which could create an attractive entry point. We think 2010 will be a year when performance is event-driven, not earnings-driven.  Small and mid caps should continue to lead innovation in the sector, which could spark M&A activity and a favorable deal environment.

Pharma companies at the 2009 J.P. Morgan Healthcare Conference cited a willingness to do ‘more deals and bigger deals’.  This will hopefully give the required stimulus for the Biotech sector.  J.P. Morgan has released a list of Biotech stocks with “high strategic value” in 2010.

1. Acorda Therapeutics(ACOR)
2. AMAG Pharmaceuticals(AMAG)
3. OSI Pharmaceuticals(OSIP)
4. Medivation(MDVN)
5. United Therapeutics(UTHR)
6. Vertex Pharmaceuticals(VRTX)
7. Human Genome Sciences(HGSI)
8. Seattle Genetics(SGEN)
9. Savient Pharmaceuticals(SVNT)

Lehman Brothers also issued its 2010 biotech forecast “Opportunities for the U.S. biotechnology group are selective and we tend to prefer small-mid cap stocks over large-cap stocks overall”.  Their list includes:

1. Amylin Pharmaceuticals(AMLN)
2. Cephalon(CEPH)
3. Human Genome Sciences
4. Onyx Pharmaceuticals(ONXX)
5. Regeneron Pharmaceuticals(REGN)