JPMorgan (NYSE:JPM) Releases Favorite Biotech Names for 2013
Analysts from JPMorgan Chase & Co. (NYSE:JPM) healthcare team published its 2013 Global Biotech Outlook yesterday, before the investment bank’s upcoming healthcare conference that begins on Monday. The J.P. Morgan biotech analysts are optimistic on 2013.
They said that the biotech industry had scored strong performance in 2012, led by steady M&A activity, upside drug releases, and positive pipeline developments. They speculate strong fundamentals should continue to lead biotech outperformance in 2013. They predict revenue growth outlook seem beatable (2013e: +8%; 2011/2012e: +13-14%), particularly with several high-profile drug releases.
The firm also released its favorite U.S. biotech stocks for this year. Their favorite names for 2013 in large cap biotech are Gilead Sciences, Inc. (NASDAQ:GILD) and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) while Medivation, Inc. (NASDAQ:MDVN), Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) are preferred in mid-cap names. Orexigen Therapeutics, Inc. (NASDAQ:OREX) is their favorite on the small-cap side.
On Wednesday, Dendreon Corporation(NASDAQ:DNDN) jumped after The Motley Fool article claimed the DNDN stock has huge potential in 2013 with its recently approved four-in-one oral HIV medication, Stribild, and the possible approval of sofosbuvir for the treatment of hepatitis C.
This stock has last 12-month performance down at -23.22%. Its price, by the end of recent trade, was up 57.72% compared with the 52 week low and was -65.85% below the 52 week high. When compared with the average-price of 200 days, that price was down -9.23% while keeping its distance from the SMA 50 at +28.49% and +15.53% compared with the SMA 20.
The New Year’s first-trade change in Amgen, Inc.(NASDAQ:AMGN) was +3.42% after U.S. District Judge Sterling Johnson denied Dr. Joseph Piacentile’s request. AMGN gained 6.21% for the last three months and 40.35% up tracking the trailing twelve months. Its price closed 43.54% up when compared with the 52 week low and was -1.83% below the 52 week high. That price was +14.23% up from an average-price of 200 days at a distance of +2.20% from the SMA 50 and +0.99% compared with the SMA 20.
On the flip side, VIVUS, Inc.(NASDAQ:VVUS) kicked off 2013 with a fall of 4.40% and its three-month performance now stands at -27.96%. The stock gained +31.45% since it hit 52 week low and is now -58.89% below the 52 week high. Its latest closing price was -37.87% down as compared to an average-price of 200 days while it is currently keeping its distance from the SMA 50 at -2.85% and +4.22% compared with the SMA 20.
Arena Pharmaceuticals, Inc.(NASDAQ:ARNA) has shown a downtrend of -0.11% for the first trading day of this year after Belviq was said to be a major disappointment and was also expected to fail to receive European approval.
ARNA now has a monthly performance floating around +1.69% and 3-month performance up +8.29%. Its most recent closing price was 21.78% up from an average-price of 200 days while it was +3.12% away from the SMA 50 and +1.24% compared with the SMA 20. The stock, after the close of business on Wednesday, was at a premium of 496.69% versus the 52 week low and was trading at -33.26% below the 52 week high.