Mid Cap Biotechs May Outperform In 2010
Analysts at Cowen and Company say that their expectation for a strong earnings season is underlined by positive fluctuations in foreign currency, favorable seasonal demand trends and a continued open pricing environment.
Cowen and Company expects emerging product companies to offer profit-making opportunities to investors in 2010. Acorda Therapeutics Inc (NASDAQ: ACOR), Affymax Inc (NASDAQ: AFFY), Alexion Pharmaceuticals Inc (NASDAQ: ALXN), Amgen Inc (NASDAQ: AMGN), Auxilium Pharmaceuticals Inc (NASDAQ: AUXL), Biogen Idec Inc (NASDAQ: BIIB) and Gilead Sciences Inc ((NASDAQ: GILD) are among the favorites for this year.
Cowen and Company believes that demand trends of the biotech sector remain solid, while the US dollar has lost roughly 3% of its value over the past three months. This may prove beneficial for Alexion Pharmaceuticals (NASDAQ: ALXN), GILD and BioMarin Pharmaceuticals (NASDAQ: BMRN). Cowen and Company believes that mid cap biotechs may outperform the large and small caps in 2010.
