In a new report, Credit Suisse analyst Kennen MacKay discusses the firm’s top biotech stock picks. According to MacKay, it’s important for investors to remain selective at the biotech sector undergoes a market correction.
Credit Suisse focused on four themes when identifying top biotech picks:
1. Potential near-term positive clinical catalysts
2. Potential near-term product launches
3. Solid management teams
4. Solid biology supporting underlying technology
Overall, the firm sees the pullback in small and mid-cap biotech names over the past year as a buying opportunity, but headwinds also remain in 2016.
“We favor companies with novel/unique biotechnology supported by strong underlying biology supporting their drug target, mechanism, and targeted indication,” MacKay explained.
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Credit Suisse’s top three Out Perform picks are Medivation Inc MDVN, Agios Pharmaceuticals Inc AGIO, and Ultragenyx Pharmaceutical Inc RARE.
In addition, the firm has a Neutral rating on FibroGen Inc FGEN and Akebia Therapeutics Inc AKBA and an Under Perform rating on OvaScience Inc OVAS.
Disclosure: the author holds no position in the stocks mentioned.
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