Best of the Week
Most Popular
1.China Crash, Greece Collapse, Harbingers of Stock Market Apocalypse Forecast 2015? - Nadeem_Walayat
2.Gold Price Awaiting Outcome of Greece Crisis - Clive_Maund
3.Gold Price Peculiar 6 Month Cycles - Rambus_Chartology
4.Gold Price Just a Little Bit More - Bob_Loukas
5.8 Unprecedented Extremes Indicate a Stock Market Bubble in Trouble - EWI
6.Gold And Silver – Without Either, You Will Be Greeced - Michael_Noonan
7.Lies, Damned Lies and Statistics - James_Quinn
8.China Crash, Greece Crisis Harbingers of Stocks Bear Market? Video - Nadeem_Walayat
9.Gold and Silver Record Shorting - Zeal_LLC
10.Markets Big Deflationary Downwave Quick Reference Guide... - Clive_Maund
Last 5 days
Will Crude Oil Price Decline Continue? -Video - 28th July 15
Gold & Silver Money Has Devolved Into Debt and Plastic - 28th July 15
Buy and "Own Gold Krugerrands" Says Money Expert Jim Grant, Very Bullish on Gold - 28th July 15
How to Protect Yourself from China's Crashing Stock Market - 28th July 15
Quantum Geopolitics - 28th July 15
Gold Mining Stocks to Weather the Storm - 28th July 15
Stock Market Bulls Beware! - 28th July 15
Will Chinese Stock Market Crash Affect the US? - 27th July 15
Crude Oil Price Under $48! - 27th July 15
Are We Seeing a Trend Reversal with U.S. Interest Rates? - 27th July 15
How to Know When the Gold Bear Market is Over - 27th July 15
Gold Bear Market Phase III - 27th July 15
Silver Bull Hammer Buy Signal - 27th July 15
Gold Cracks Support and Plunges to New Lows - How Low Will Price Go? - 27th July 15
Commodity Markets Breakdown Of 2015 Is Now A Fact - 26th July 15
Gold Price at a Five-Year Low: Here’s What to Do - 26th July 15
Stock Market Primary III Inflection Point - 26th July 15
Central Banks and Our Dysfunctional Gold Markets - 25th July 15
Gold And Silver - The US Dollar Does Not Exist, Part II - 25th July 15
How Wall Street Put Apple Stock in Animal House - 25th July 15
How to Trade Markets Using the Stochastic Oscillator - Video - 24th July 15
A Bond Market Crisis Is Coming... Here's What to Do - 24th July 15
Why There's Resistance to the Iran Nuclear Deal - 24th July 15
Absurd Gold Stock Levels - 24th July 15
Gold Mining Stocks Nearing Rebound - 24th July 15
Misperceptions Create Significant Bond Market Value - 24th July 15
Commodities Distressed Investing - 24th July 15
OPEC Shorts Are Driving Down the Crude Oil Price - 24th July 15
USD Index Rebounds - 24th July 15
If You’re Worried About a Tech Bubble, You’re Focusing on the Wrong Thing - 24th July 15
Gold Stocks Bear Market Bottom Buying Opportunity? - Video
The Stealth War on the United States - 23rd July 15
Commodity Prices, Gold and Silver Stocks Next Leg Down - 23rd July 15
The ‘Real’ Reason the Fed Wants to Raise Interest Rates - 23rd July 15
Crude Oil Price Slump is a Once in a Decade Opportunity to Make Money, Guaranteed - 23rd July 15
Gold Price Hits a 5-Year Low: How to Time the Next MAJOR Bottom - 22nd July 15
Silver and the Deflation Thesis - 22nd July 15
Gold Price Crash - Trend Forecast 2015, Gold Stocks Buying Opportunity? - 22nd July 15
The Three Reasons Behind Iran’s Resistance to the Nuclear Deal - 22nd July 15
Winning the Hunger Games - How to Choose Successful Agriculture Investments - 22nd July 15
Are Free Markets The Solution? - 22nd July 15
Gold Hammered “Unprecedented Attack” - 21st July 15
The Turkish Enigma - 21st July 15
Gold and Silver: The Final Capitulation Commences - 21st July 15
Greater Israel Setback from Iranian Nuclear Agreement - 21st July 15
U.S. Housing Market: Is the Roof About to Cave In (Again)? - 21st July 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stock Market Bubble in Trouble

Biotech Stocks to Buy Now

Companies / BioTech Nov 15, 2012 - 09:35 AM GMT

By: Money_Morning

Companies

Best Financial Markets Analysis ArticleDon Miller writes: If you're looking to hit a home run over the next 12 months, your best bet for stocks to buy now is biotechnology companies - especially those focused on cancer research.

Here's why: biotech stocks have been in a stealth bull market in 2012.


In fact, the values of the 230 publicly-traded biotech companies tracked by the BioWorld Stock Report have jumped by an average 38% year-to-date.

The third quarter was especially hot. The Nasdaq Biotechnology Index rose 10% over that time frame and is up a healthy 37% this year.

And, nothing is hotter than companies focused on the battle against cancer.

Take Medivation Inc. (Nasdaq: MDVN), for example. This California-based biotech has jumped from $23 to $46 a share, largely on the approval of Xtandi, its novel prostate cancer drug.

Thousands of other experimental drugs are going through various stages of clinical trials, and the largest category in the pipeline is cancer drugs. With that in mind, it's safe to say that if you're looking for a stock with big upside potential, cancer-driven biotech stocks should be high on your list. Biotech Stocks: Cancer Research is Paying Off

A cancer diagnosis was once a death sentence -- especially if you were diagnosed with the disease in its late stages.

But, both government and industry have spent vast sums in the last decade researching how cancers develop and spread.

And now all that investment is starting to pay off -- recent clinical trials and treatment breakthroughs show real promise.

The newest cancer research focuses on three fronts.

•Finding ways to boost the ability of the body's own immune system to recognize and kill malignant cells.
•Identifying unique characteristics of cancer cells and aiming drugs to destroy only those cells - as opposed to traditional chemotherapy, which kills healthy cells, too.
•Blocking the pathways used by cancer cells to spread throughout the body and killing the trapped cells before they escape and multiply.
These revolutionary new therapies have given patients renewed hope -- and investors good reasons to bid up shares of biotech companies that specialize in cancer cures.

Three Phases of Drug Testing
The value of a company that's working on cancer cures hinges on how its drugs progress through clinical trials.

The Food and Drug Administration (FDA) requires drug makers to navigate a three-stage testing process to prove a drug's safety and effectiveness.

New drugs are first tested on humans in Phase One trials to determine whether a drug is effective and if it has serious side effects.

Phase Two testing treats a specific illness in a larger group of patients at a predetermined dose level and measures how patients tolerate it.

Phase Three trials compare the benefits of the drug against existing treatments.

If the drug ultimately proves both effective and safe, the results are submitted to the FDA for approval.

Clinical trials are everything, since 95% of all new drugs never make it through clinical trials.

But as a drug successfully completes each trial, the odds of success rise. And analysts start to boost their values -- often by exponential amounts.

Still, almost anything can happen before a drug gets final regulatory approval.

"These are inherently risky assets," said analyst Geoffrey Porges of Bernstein Research.

Three Biotech Stocks to Buy Now
For investors, that presents both challenge and opportunity.

The failure of a single clinical trial can send both the company and its investors into a tailspin. Conversely, if a drug succeeds, a small company could suddenly have the potential to double in price overnight.

By focusing on biotech stocks with drug candidates headed into late stage clinical trials you can vastly increase your odds of finding a winner to buy now.

Here are three cancer-focused biotech stocks that experts feel are worth a look:

•Exelixis Inc. (Nasdaq: EXEL) is developing Cabozantinib, an inhibitor of tumor growth in the development and progression of various cancers. The drug is in Phase III trials for the treatment of thyroid cancer and also in clinical programs focused on the treatment of prostate, ovarian, breast cancer and melanoma. In addition, Exelixis is collaborating on additional therapies with heavy hitters like Bristol-Myers Squibb Co. (NYSE: BMY), Sanofi SA (ADR NYSE: SNY) and GlaxoSmithKline plc (ADR NYSE: GSK).

•ARIAD Pharmaceuticals, Inc.'s (Nasdaq: ARIA) Ridaforolimus is being studied in multiple clinical trials in patients with metastatic sarcomas, breast cancer, endometrial cancer, prostate cancer and lung cancer. The company has collaboration and license agreements with deep-pocketed Merck & Co. Inc. (NYSE: MRK) for the development, manufacture and commercialization of ridaforolimus and licenses to develop and commercialize stents and other medical devices to deliver the drug.
•And in June, the FDA approved Carfilzomib, the Onyx Pharmaceuticals Inc. (Nasdaq: ONXX) drug for multiple myeloma. According to analysts' estimates compiled by Bloomberg News, the drug could ring up annual sales of $523 million by 2016 -- more than doubling last year's revenues. Onyx is also involved in a partnership with Bayer AG (ADR PINK: BAYRY) with drugs that treat kidney and liver cancers.

As for a fourth, Private Briefing Editor Bill Patalon has discovered a biotech stock with a large, sudden and concentrated block of insider buying. In fact, these insiders just spent $353,000 on the purchase of nearly 215,000 shares of their company's stock.

According to Bill, this company is so strong its shares could jump by 295%.

To learn more about this company click here.

Source :http://moneymorning.com/2012/11/15/three-biotech-stocks-to-buy-now/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History