Top 10 Biotech Stocks To Own For 2018

The best pharmaceutical stock in 2017is poised to cash in on a surge of spending on the pharmaceutical industry.

The U.S. Centers for Medicare & Medicaid Services estimate that spending on pharmaceutical drugs could hit $615 billion in 2025. That’s an increase of nearly 100% over 2015’s pharmaceutical spending, which totaled $310 billion.

That spending increase could help boost pharmaceutical stocks. But investors shouldn’t invest in just any drug company. Here’s how to find the best pharmaceutical stocks, plus our top pick to buy in 2017…

How to Pick the Right Pharmaceutical Stock

Guidelines for Investing in Pharmaceutical Stocks

Money Morning Biotech Investing Specialist Ernie Tremblay developed five guidelines to help you find pharmaceutical stocks worthy of investment.

Strong pipeline Safe and effective drugs Cash reserves and burn rate Patents and market exclusivity grants Upcoming catalysts

If a company meets all of these guidelines, you can feel comfortable investing in it.

Top 10 Biotech Stocks To Own For 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.

Top 10 Biotech Stocks To Own For 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 Own For 2018: Medivation Inc.(MDVN)

Advisors’ Opinion:

  • [By Monica Gerson]

    Medivation Inc (NASDAQ: MDVN) is said to have spurned recent takeover approach from France’s Sanofi SA (ADR) (NYSE: SNY), according to sources as reported by Bloomberg on Tuesday. Sanofi wants Medivation’s treatments for hard-to-cure cancers, the sources said. Medivation shares surged 8.46 percent to $49.60 in the after-hours trading session, while Sanofi shares fell 0.59 percent to $42.02 in after-hours trading.

  • [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 Lisa Levin]

    Shares of Medivation Inc (NASDAQ: MDVN) got a boost, shooting up 24 percent to $46.35 amid word of a new report from Bloomberg, saying the company is working with bankers to defend itself against preliminary interest of a takeover. However, Reuters separately reported the company is working with JPMorgan to handle interest from other companies, but said Medivation has no interest in selling itself.

  • [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.

Top 10 Biotech Stocks To Own For 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 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.

  • [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 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.

Top 10 Biotech Stocks To Own For 2018: Biogen Idec Inc(BIIB)

Advisors’ Opinion:

  • [By Todd Campbell]

    A new and highly anticipated study byCelgene Corp. (NASDAQ:CELG) shows that its promising multiple sclerosis drug could soon reshape the $19 billion multiple sclerosis market. On Friday, management reported that ozanimod met its primary endpoint for reducing MS relapses better than Biogen Inc.’s (NASDAQ:BIIB) Avonex, and importantly, it did so without any new safety risks.

  • [By WWW.THESTREET.COM]

    Breakups have the potential to create a lot of value. Just look at what Biogen (BIIB) did with its hemophilia franchise. Spun out as Bioverativ (BIVV) , shares started trading earlier this year. The stock has climbed some 23% on seemingly no news, Cramer noted.

  • [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.

  • [By WWW.MONEYSHOW.COM]

    Biogen (BIIB)

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

  • [By George Budwell]

    Shares of theDanish drugmaker Forward Pharma A/S (NASDAQ:FWP) gained 48.2% yesterday as the result of a settlement and licensing deal with Biogen (NASDAQ:BIIB)involving an ongoing patent dispute over the multiple sclerosis drug Tecfidera. Per the terms of the deal, Biogen will fork overa non-refundable$1.25 billion licensing fee, and possibly pay 10% to 20% royalties on Tecfidera’snet sales to Forward starting in 2021.

  • [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.

Top 10 Biotech Stocks To Own For 2018: Amgen Inc.(AMGN)

Advisors’ Opinion:

  • [By Maxx Chatsko]

    Shares of Radius Health (NASDAQ:RDUS) rose over 20% Monday morning after Amgen (NASDAQ:AMGN) announced worrisome complications were discovered during a phase 3 trial for its osteoporosis drug candidate, Evenity. While the drug candidate met its primary endpoint in a more than 4,000-patient phase 3 study, a high rate of serious heart-related side effects were discovered. The drug was previously expected to gain marketing approval from the U.S. Food and Drug Administration in July, but that decision will now be delayed by up to a year or more, if the drug is approved at all.

  • [By Johanna Bennett]

    Shares of Amgen (AMGN) led the drop in the S&P 500 today falling almost 6.4% to close at $168.61 after the drug maker unveiledlong-awaited data on its anti-cholesterol drug Repatha.

    Can shares of Amgen rebound from todays selloff?

    Yes, is the answer from RBC Capital Management analyst Michael Yee. He argues that the drug makers share price can grind back up if access to Repatha increases over the next few quarters. Earlier today, Amgen released data from an outcome study that missed expectations, leading some analyst to predict that health plans will continue to restrict access to the drug.

    As Yee writes:

    A number of key developments midday at the ACC conference that should shed increased confidence that Repatha reimbursement and utilization will continue to increase over time driving a new growth driver for AMGN and increased confidence in a new product cycle. If reimbursement does start to open up over next few quarters (tracking IMS scripts and other datapoints) and AMGN manages their execution on quarters/guidance – stock should recover off today’s overreaction reflecting high expectations

  • [By Chris Lange]

    Amgen Inc. (NASDAQ: AMGN) is expected to report its most recent quarterly results on Wednesday. The consensus estimates call for $3.00 in EPS and $5.61 billion in revenue. Shares closed trading at $160.41 on Friday, in a 52-week range of $133.64 to $184.21. The consensus price target is $185.13.

  • [By Ben Levisohn]

    Amgen (AMGN) has tumbled 3.6% to $158.65 after beating earnings forecasts but missing on sales.

    Buffalo Wild Wings (BWLD) has dropped 3% to $157.51 after its earnings fell short of the Street consensus.

  • [By Stavros Georgiadis]

    Gilead Sciences (NSDQ:GILD) has underperformed the market with its stock price down almost 25% compared to a 10.33% gain in Nasdaq Composite (INDX:COMPX) and 14.60% gain of Dow Jones Industrial Average (INDX:INDU). Gilead and Amgen (NSDQ:AMGN)have had a very tough year, so it is interesting to know if now is the time to invest in GILD stock, not from a bottom fishing point of investing, which is often too risky, but on some solid financial and fundamentals arguments.

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