Outstanding Year for Biotechnology -Average Performance is up 35% YTD
Many Rayno Life Science Stocks have outperformed the sector and the ETFs:
- Albany Molecular Inc. (AMRI), a contract research organization with long term experience in drug discovery, development and manufacturing soared 82% YTD on improved financial results.The stock is a turnaround story and is still selling at less that 1X revenues. Modest 6.4% growth is expected next year with EPS of 24 cents.
- Gilead Sciences Inc. (GILD) a leading biotech Company for treatment of infectious diseases such as HIV, Flu and Hepatitis and perennial Rayno pick found new investors driving the stock up 77% YTD. Sales growth of 10% is expected in 2013. The product pipeline is robust in many disease areas: liver, cancer and HIV.
- Regeneron Pharmaceuticals Inc. (REGN) is our best performer up 212% YTD and up 17X since we first recommended the stock in 2009. Regeneron was boosted by Q3 Sales of its Eyelea drug for macular degeneration and total drug revenues of $427M. 2013 revenues are forecasted at $1.8B which at the current market cap would be 9.1 times sales. The Phase 2 and 3 pipeline is extensive encompassing cancer, eye,and inflammatory diseases.
Investors should be cautious in adding new positions at this point as the sector peaked in early October and profit taking in many high flying stocks is expected.
We will review our Portfolio in early February as fiscal cliff issues get resolved.
|Paired Trade||closed||JY 5||CLOSED|