Market Overview

Three Biotech Stocks Analysts Are Keen On (MDVN, GEVA, OPTR)

Here is a quick look three top-performing biotech stocks with a consensus recommendation of analysts of Strong Buy. They are Medivation (NASDAQ: MDVN), Synageva BioPharma (NASDAQ: GEVA) and Optimer Pharmaceuticals (NASDAQ: OPTR).

Medivation

This San Francisco-based biopharmaceutical company focuses on developing novel small molecule drugs for the treatment of serious diseases in the United States and Europe. Its market capitalization is near $4.0 billion and the stock jumped to a new multiyear high last week following news that the company won approval from the FDA for a late-stage prostate cancer treatment. Revenue for the current quarter is expected to have more than doubled from a year ago. The operating margin is in negative territory, but less so than the industry average. Short interest is more than six percent of the float. Out of 12 analysts who follow the stock and surveyed by Thomson/First Call, 11 rate it at Buy or Strong Buy; none recommend selling shares. The mean price target is about 12 percent higher than the current share price, as well as higher than the 52-week high. Over the past six months, Medivation has outperformed competitors Abbott Laboratories (NYSE: ABT) and Dendreon (NASDAQ: DNDN) as well as the broader markets.

Synageva BioPharma

This clinical stage biopharmaceutical company focuses on the discovery, development and commercialization of therapeutic products for patients with life-threatening rare diseases and unmet medical needs. It has a market cap of more than $1 billion and it is headquartered in Lexington, Massachusetts. Shares have been on the rise for two years until they met resistance at the $50 level starting in mid-July. Chairman Felix Baker purchased 886,000 shares on July 13 through Baker Brothers Investments, which as of April 23 controlled 36.1% of Synageva. All seven analysts who follow the stock recommend buying shares. Their mean price target, or where they expect the share price to go, is more than 13 percent higher than the current share price, as well as higher than the 52-week high. Despite plateauing for the past six weeks, shares are still up about 94 percent year to date. Synageva has outperformed competitor Gilead Sciences (NASDAQ: GILD) and the Nasdaq over the past six months.

Optimer Pharmaceuticals

Based in San Diego, California, this company focuses on development and commercialization of various pharmaceutical products. The market cap is about $745 million and, like the others discussed here, it does not offer a dividend. Better-than-expected second-quarter results helped Optimer bounce back from a sell-off in July. The share price has popped more than five percent in the past week on heavy volume. Like Medivation, Optimer's operating margin is in negative territory, but less so than the industry average. Short interest, though, is about 21 percent of the float. Still, all 11 analysts surveyed recommend buying shares. They believe the stock has some room to run, as their mean price target is more than 17 percent higher than the current share price, as well as higher than the 52-week high. The share price is about 31 percent higher year to date. Over the past six months, the stock has outperformed Pfizer (NYSE: PFE) and Sanofi (NYSE: SNY) as well as the broader markets.

Posted-In: abbott laboratories Dendreon Gilead Sciences Medivation optimer pharmaceuticalsLong Ideas Short Ideas Trading Ideas Best of Benzinga

 

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