Monday, October 22, 2012

9 Healthy Biotech Stock Buys

Baby boomers are getting older and in need of more and more treatments, and looming patent expirations at Big Pharma has prompted a recent race for the next big blockbuster drugs. While many of these treatments are being developed by health care heavyweights, smaller biotechnology firms with a focused mission on a small category of patients can see huge profits if their research team manages to develop the next hit in health care. While these picks can be very aggressive and often live or die based on FDA approval, it�s worth noting some of the best-looking stocks as of this week in the biotech sector.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. This week, I�m looking at nine biotech stocks to buy.

Here they are, in alphabetical order. Each one of these stocks gets an �A� or �B� according to my research, meaning it is a �strong buy� or �buy.�

Alexion Pharmaceuticals (NASDAQ:ALXN) develops products for numerous health issues, including the areas of hematology, nephrology, neurology, ophthalmology and cancer. ALXN is a quite a large company, with a $12 billion market cap, and has brought in gains of 59% year to date.

AVEO Pharmaceuticals (NASDAQ:AVEO) is best known as a cancer therapeutics company. A modest gain of 9% year to date for AVEO has kept shareholderd complacent.

Biogen Idec (NASDAQ:BIIB) is involved with discovering, developing, manufacturing and marketing products for neurological disorders. BIIB has soared lately, up 40% year to date.

Celgene (NASDAQ:CELG) is involved with the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory diseases. CELG has followed the trend of other Big Pharma stocks by gaining 6% year to date in a down market.

Cephalon (NASDAQ:CEPH) focuses on improving the quality of life of people throughout the world through its various products. CEPH enters the list with a solid year-to-date return of 31%.

Cepheid (NASDAQ:CPHD) is best known for developing and marketing fully integrated systems for testing in the clinical market. CPHD has been anything but sickly in 2011, gaining almost 76% year to date, compared to losses by the broader markets.

Gilead Sciences (NASDAQ:GILD) is a biopharmaceutical company operating in North America, Europe and Asia Pacific. Year to date, GILD has gained 8%, compared to losses by the broader markets.

Opko Health Inc. (AMEX:OPK) is a pharmaceutical and diagnostics company that is involved with molecular diagnostic tests, pharmaceuticals and vaccines. Year to date, OPK has far outpaced the broader markets, gaining 23% amid a volatile market.

Vertex Pharmaceuticals (NASDAQ:VRTX) discovers, develops and commercializes small molecule drugs. Year to date, VRTX has outpaced the market and many other Big Pharma stocks, gaining 27%.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier�s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

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