Top 10 Biotech Stocks To Invest In 2018

While the foreseeable future for the broad market may not be clear, theres one group that still moves independently of stocks as a whole biotech stocks.

These stocks are still pushed and pulled by industry- and company-specific news, which is usually driven by progress (or lack thereof) of a pipeline.

To that end, a handful of biotech stocks have some major catalysts in store for the fourth quarter of 2016. These events have a very good shot at moving stocks after, or even before, the news is released.

Heres a closer look at the nine names that, according to InvestorPlace, could serve up the most fireworks over the course of the coming three months.

Top 10 Biotech Stocks To Invest In 2018: ARIAD Pharmaceuticals Inc.(ARIA)

Advisors’ Opinion:

  • [By Lisa Levin]

    Healthcare shares gained around 0.73 percent in trading on Monday. Meanwhile, top gainers in the sector included Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA), and VCA Inc (NASDAQ: WOOF).

Top 10 Biotech Stocks To Invest In 2018: Biogen Idec Inc(BIIB)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Biogen (BIIB) tumbled to the bottom of the S&P 500 today after getting cut by two analysts.

    Agence France-Presse/Getty Images

    Biogen dropped 4.7% to $278.96 at 4:19 p.m. today, while the S&P 500 declined 0.2% to 2,381.38.

    Leerinks Geoffrey Porges cited the “slower than expected ramp for Spinraza” in cutting Biogen to Market Perform from Outperform, while Morgan Stanly’s Matthew Harrison wrote that his decision to cut Biogen to Market Weight from Overweight was “not a downside call, but a timing call.”

    Biogen’s market capitalization fell to $60.2 billion today from $63.2 billion yesterday. It reported net income of $3.7 billion on sales of $10.2 billion in 2016.

    Barron’s Teresa Rivas recommended buying Biogen in December after the company released positive trial data on its Alzheimer’s drug.

  • [By Chris Lange]

    Biogen Inc. (NASDAQ: BIIB) had its short interest increase to 2.63 million shares from the previous 2.36 million. The stock closed Friday at $305.20, within a 52-week range of $223.02 to $333.65.

  • [By Brian Orelli]

    While that’s fine for clinical trials, it may make it difficult for Ionis’ drugs to compete with drugs that work as well but don’t have side effects that need to be monitored. Of course, for Spinraza, which Biogen (NASDAQ:BIIB) and Ionis recently got approved for spinal muscular atrophy, side effects aren’t an issue because there aren’t any other treatment options at the moment.

  • [By WWW.MONEYSHOW.COM]

    Biogen (BIIB)

    Biogen discovers, develops and delivers innovative therapies for the treatment of neurodegenerative diseases and autoimmune disorders.

  • [By Ben Levisohn]

    Biogen (BIIB) has dropped 2.2% to $286.16 after getting cut to Market Perform from Outperform at Leerink, and to Equal Weight from Overweight at Morgan Stanley.

Top 10 Biotech Stocks To Invest In 2018: Medivation Inc.(MDVN)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Well, it looks like Medivation (MDVN) now has five suitors after reports that Amgen (AMGN) is joining Pfizer (PFE), Sanofi (SNY), AstraZeneca (AZN) and Novartis (NVS) in considering a bid. Maxim’s Jason Kolbert and Jason McCarthy offer their thoughts:

    Medivation reports tonight at 4:30pm…

    We expect the focus to be on the recent proposals from Sanofi (SNY $38.75- NR); Pfizer (PFE $33.40 -NR), AstraZeneca (AZN $28.26-NR) and just today, Amgen (AMGN – $154.18 – NR)…

    Medivation is returning to new highs as suitors line up to make acquisition bids. In this scenario what is the right discount rate for modeling purposes?

    We believe our model for Xtandi revenues is good, therefore we review our risk rating and determine the following: 30% = $47 15% = $76 10% = $99

    With Medivation’s board having now said No to anything less than $65 per share, it suggests to us that the stability and predictability of Xtandi’s revenues is greater than we thought, the risk is lower. Our intermediate risk rating is 15% or $76 fair value.

    Shares of Medivation rose 0.3% to $59.22 today, while Pfizer gained 0.5% to $33.56, Sanofi fell 0.5% to $39.07, AstraZeneca dropped 0.6% to $39.07, Novartis declined 0.3% to $74.12, and Amgen ticked up 0.1% to $154.25.

     

  • [By Ben Levisohn]

    RBC’s Simos Simeonidis and Matthew Eckler try to find the right comparison for Pfizer’s (PFE) purchase of Medivation (MDVN):

    Scott Eisen/Bloomberg News

    We were obviously wrong with our Sector Perform rating: while we knew an M&A transaction was definitely a good possibility, we just could not get to this level of valuation using a realistic Xtandi model and thus could not recommend the stock. The only way for us to get to $81.50 (or even to $60-$70/share) would have been to assign very significant value to talazoparib. And we could not do that given the amount of available clinical evidence.Medivation shareholders who held on to their shares past the $50′s, did just that, were proven right and are now rewarded for it, since they believed that someone would be willing to pay for this asset just months ahead of Phase III data. The key question is why would a company be willing to part with what they claim/think may be a multibillion dollar drug that works in multiple cancers. We believe the obvious answer is because they’re smart and understand drug development risk better than most. We’ll know in a matter of months whether Pfizer/Medivation is like Amgen (AMGN)-Onyx (carfilzomib) or not.

  • [By Monica Gerson]

    Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Friday's regular session.

    PACCAR Inc (NASDAQ: PCAR) Aug16 52.5 Puts: 10000 @ ASK $1.70: 10k traded vs 335 OI: Earnings 7/26 $54.94 Ref
    Regeneron Pharmaceuticals Inc (NASDAQ: REGN) Jul16 345 Puts: 949 @ ASK $8.70: 1003 traded vs 55 OI: Earnings 8/2 $360.20 Ref
    NVIDIA Corporation (NASDAQ: NVDA) Fri 6/24 47.0 Puts (Wkly) Sweep: 689 @ ASK $1.12: 3758 traded vs 136 OI: Earnings 8/4 $46.69 Ref
    Medivation Inc (NASDAQ: MDVN) Sep16 55.0 Puts: 4000 @ Above Ask! $3.40: 5303 traded vs 716 OI: Earnings 8/4 $59.44 Ref
    Expeditors International of Washington (NASDAQ: EXPD) Aug16 47.0 Puts Sweep: 950 @ ASK $1.35: 973 traded vs 381 OI: Earnings 8/2 $48.15 Ref

    Posted-In: Huge Put PurchasesNews Options Markets

  • [By Ben Levisohn]

    Medivation (MDVN) has soared 20% to $80.41 after agreeing to be purchased for $14 billion, or $81.50 a share, by Pfizer (PFE). Pfizer has declined 0.7% to $34.75.

  • [By Scott Rubin]

    Big gainers on the day included Intersil Corp (NASDAQ: ISIL), which jumped 20 percent on news of a buyout, and Medivation (NASDAQ: MDVN), which added 20 percent on a deal with Pfizer (NYSE: PFE) related to its cancer drug. Cotiviti Holdings Inc (NYSE: COTV) lost around 9 percent in the wake of a mid-day sell-off and Marathon Oil Corporation (NYSE: MRO) fell 7 percent in the wake of a management shakeup.

  • [By Ben Levisohn]

    Reports suggest that Gilead Sciences (GILD) and Celgene (CELG) have joined the bidding process forMedivation (MDVN), one that already includes (maybe) Amgen (AMGN), and of course Sanofi (SNY), which is trying to throw out Medivation’s board. Of the three biotech giants, Citigroup’s Robyn Karnauskas and team argue that Amgen is best positioned to win the battle. They explain why:

Top 10 Biotech Stocks To Invest In 2018: Amgen Inc.(AMGN)

Advisors’ Opinion:

  • [By Tom Gentile]

    After the Senate scored the votes on Tuesday to review a plan for repealing or repealing and replacing what’s come to be known as Obamacare, we saw a mixed-bag reaction from healthcare stocks. Even some of the bulletproof ones, like Amgen Inc. (Nasdaq: AMGN), closed lower from their opening highs.

  • [By Ben Levisohn]

    Biotech stocks have been particularly unloved during the past year, with the iShares Nasdaq Biotech Index ETF (IBB) gaining just 7% to the S&P 500′s 20% rise. Today, however, Amgen (AMGN) is getting a lot of love from the market after releasing Street beating earnings and reporting that its anti-cholesterol drug reduced heart attacks.

  • [By Chris Lange]

    Shares of Amgen Inc. (NASDAQ: AMGN) saw a handy gain to close out the week after the company won a Delaware court ruling that blocked Sanofi (NYSE: SNY) and Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) from selling their cholesterol-lowering drug in the United States. Essentially the court found that the drug Praluent actually infringed upon Amgens patents for its rival treatment Repatha.

Top 10 Biotech Stocks To Invest In 2018: Alnylam Pharmaceuticals Inc.(ALNY)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Yesterday, after markets closed, it was announced that US Federal District Court Judge Sue Robinson ruled to issue a permanent injunction against Praluent, the PCSK9 mAb for hypercholesterolemia from partners Regeneron and Sanofi, due to infringement of patents from Amgen. The court has imposed a 30-day suspension (stay) on the injunction to allow for settlement or appeal of the District Court decision. Sanofi and Regeneron have announced their intent to appeal the ruling to the US Court of Appeals for the Federal Circuit (CAFC). The injunction decision is consistent with our counter-consensus published views communicated on 25 January 2016 (“Downgrade to Sell on evidence of likely infringement of Amgen’s PCSK9 patents”) and subsequently. Based on consultation with expert legal counsel, we now put >75% probability Amgen will prevail on appeal and/or Praluent is ultimately removed from the US market, and/or Amgen achieves a settlement substantially in its favor. We currently model $3.3 bn in non-risk-adjusted 2022E US revenues for Praluent, while consensus models $1.2 bn in 2022E US revenues. We reiterate our view from 25 January 2016 to preferentially own Amgen, The Medicines Company (MDCO) (Buy), and Alnylam (ALNY) (Buy) over Regeneron for exposure to PCSK9 inhibitor market dynamics as outcomes trials approach.

  • [By Brian Orelli]

    Alnylam Pharmaceuticals (NASDAQ:ALNY) jumped as much as 14.5% today after announcing earnings after the bell yesterday. As a development-stage biotech, it wasn’t the revenue or the earnings that caused the spike, but the progression of Allnylam’s pipeline.

  • [By Cory Renauer]

    Treating diseases that have a genetic component by altering the expression of the responsible genes is a promising new field of medicine, but it has been much less straightforward than biopharmaceutical companies had expected. Two contenders in this area, Alnylam Pharmaceuticals (NASDAQ:ALNY) and Ionis Pharmaceuticals (NASDAQ:IONS), saw a mix of setbacks and success in 2016.

  • [By Lisa Levin]

    Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) shares shot up 53 percent to $114.87 after the company impressed investors with encouraging data from a phase 3 clinical trial. Alnylam, a company dedicated towards treating a wide range of debilitating diseases through ribonucleic acid (RNA) interference (RNAi) therapeutics, said after Tuesday's market close that a phase 3 study called APOLLO met its primary efficacy endpoint and all secondary endpoints.

  • [By Chris Dier-Scalise]

    On Thursday, the Vetr crowd downgraded Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) from 4.5 stars (Strong Buy), which was issued two days ago, to 3.5 stars (Hold). Crowd sentiment for Alnylam at the time of the downgrade was edging positive, with 66 percent of Vetr user rating bullish.

Top 10 Biotech Stocks To Invest In 2018: ArQule Inc.(ARQL)

Advisors’ Opinion:

  • [By Paul Ausick]

    ArQule Inc. (NASDAQ: ARQL) dropped about 23% Friday, to post a new 52-week low of $1.13 after closing at $1.47 on Thursday. The stock’s 52-week high is $2.17. Volume was about 15 times the daily average of around 150,000 shares. The biopharmaceutical company said this morning that a phase 3 trial of a cancer drug did not meet the primary endpoint of improving overall survival.

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