Top 10 Biotech Stocks To Watch For 2018

There were 8, yes, 8, completed initial public offerings (IPOs) last week, and every one of them posted a first-day pop and all finished the week with a positive return. Five more IPOs are on the calendar for this week, including a technology unicorn, a healthcare REIT, two healthcare offerings, and a networking company.

Last week’s largest capital raise was Valvoline Inc.’s (NYSE: VVV) $660 million spin-off from Ashland Inc. (NYSE: ASH). The motor oil and lubricant company’s market cap at the time of the IPO was $4.4 billion, and shares gained 5% at the end of the first day’s trading.

The biggest first-day pop for the week was posted by The Trade Desk Inc. (NASDAQ: TTD), a programmatic platform for digital advertising, that priced above its expected range and still jumped 67% on its first day out.

Late-stage biotech Novan Inc. (NASDAQ: NOVN) priced at the low end of its range, got a 65% first-day pop, and closed the week up 83%.

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

Advisors’ Opinion:

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Wednesday was Biogen Inc. (NASDAQ: BIIB) which traded down about 6% at 297.99. The stocks 52-week range is $244.28 to $370.67. Volume was about 5 million compared to the daily average volume of roughly 1 million.

  • [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 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 Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Thursday was Biogen Inc. (NASDAQ: BIIB) which traded down 4.6% at $279.08. The stocks 52-week range is $223.02 to $333.65. Volume was 3.4 million versus the daily average of 1.6 million shares.

  • [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.

Top 10 Biotech Stocks To Watch For 2018: Alnylam Pharmaceuticals Inc.(ALNY)

Advisors’ Opinion:

  • [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.

  • [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 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 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.

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

Advisors’ Opinion:

  • [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:

  • [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 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]

    Macro considerations have continued to weigh on stocks whenever they’ve shown signs of life and consensus estimates for many of the large cap companies have been declining. With the sector’s underperformance, the delta in the average PEG ratio for biotech growth companies (excluding Medivation (MDVN)) compared to non-biotech growth companies is slightly wider than it’s been for most of the year. As such, we remain constructive on the sector. That said, while valuations are attractive on a relative basis, there remains some uncertainty for the group and we would not be surprised to see the volatility continue…

  • [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 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 Watch For 2018: Amgen Inc.(AMGN)

Advisors’ Opinion:

  • [By Chris Lange]

    Amgen Inc. (NASDAQ: AMGN) saw its short interest increase to 7.78 million shares from the previous level of 7.38 million. Shares closed most recently at $145.34, in a 52-week trading range of $133.64 to $176.85.

  • [By WWW.THESTREET.COM]

    Finally on Friday, Tiffany (TIF) reports, and Cramer is betting on positive news now that the company has an activist involved. He was also bullish on Amgen’s (AMGN) analyst meeting, saying investors should use any market weakness earlier in the week to buy.

  • [By ]

    Booker’s report took on other companies as well. Pfizer (PFE) , Gilead Sciences (GILD) , AbbVie  (ABBV) , Amgen (AMGN) , Bristol-Myers Squibb (BMY) Eli Lilly & Co. (LLY) , and Mylan NV (MYL) are cited for everything from raising drug prices, to stock buybacks and putting shareholder interest before that of the public.

  • [By WWW.THESTREET.COM]

    That’s why Cramer said he’ll be listening for news coming from Celgene (CEL) , Amgen (AMGN) , Allergan (AGN) , an Action Alerts PLUS holding, and Regenron (REGN) , all of which are set to present. Of the four, Cramer said he’s sticking with Allergan and Amgen.

  • [By Keith Speights]

    Investors have turned to the pharmaceutical industry for solid dividend stocks for a long time. However, biotechs typically weren’t high on the list when it came to dividends. Over the past few years, though, Amgen, Inc. (NASDAQ:AMGN) and Gilead Sciences, Inc. (NASDAQ:GILD) have risen in prominence as attractive alternatives for dividend-seeking investors.

  • [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.

Top 10 Biotech Stocks To Watch 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.