Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
How Investors Can Profit From The Coming Resource Wars - 29th May 17
Gold vs. Gold Mining Shares – Just The Facts, Ma’am - 29th May 17
Walkers Crisps Pay Packet £5 Cash Wins After Buying 64 Multi-packs - 29th May 17
SPX/NDX/NAZ Hit New All-time Highs - 27th May 17
GBPUSD Top in Place, GOLD Price Ready to Rocket? - 27th May 17
Silver Mining Stocks Fundamentals - 27th May 17
BBC Newsnight Falls for FAKE POLLS, Opinion Pollsters Illusion for Mainstream Media to Sell - 27th May 17
UK Local Election Results Forecast for General Election 2017 - 26th May 17
Stock Market & Crude Oil Forecast! - 26th May 17
Opinion Pollsters UK General Election Seats Forecasts 2017 - 26th May 17
Bitcoin and AltCoins Crypto Price Correction - 26th May 17
Bearish Head and Shoulders in EURUSD? - 26th May 17
SELL US Stocks - Massive Market CRASH WARNING! - 26th May 17
EURGBP: A Picture of Elliott Wave Precision - 26th May 17
Credit Downgrades May Prompt Stock Market Capital Shift - 26th May 17
Rosenstein and Mueller: the Regime Change Tag-Team - 25th May 17
Stock Market Top - Are We There Yet? - 25th May 17
Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey - 25th May 17
USD/CAD Continues Decline - 25th May 17
Bitcoin Price Goes Loco! Surges through $2,500 Despite Unclear Fork Issues - 25th May 17
The US-Saudi Arms Deal - Sordid Saudi Signals - 25th May 17
The No.1 Commodity Play In The World Today - 24th May 17
Marks and Spencer Profits Collapse, Latest Retailer Hit by Brexit Inflation Tsunami 2017 - 24th May 17
Why Online Trading Platforms Are Useful for Everyone - 24th May 17
The Stock Market Will Tank Hard - 24th May 17
It’s Better to Buy Gold & Silver When It DOESN’T Feel Good - 24th May 17
Global Warming - Saving Us From Us - 24th May 17
Stock Market Forecast for Next 3 Months - Video - 23rd May 17
Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows - 23rd May 17
The Only Metal Trump Wants More Than Gold - 23rd May 17
America's Southern Heritage is a Threat to the Deep State - 23rd May 17
Manchester Bombing - ISIS Islamic Terrorist Attack Attempt to Influence BrExit Election - 23rd May 17
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

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

© 2005-2016 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

Catching a Falling Financial Knife