NanomedicineCenter.com

Biotech stocks hold enormous investment promise in 2009

Financially, 2009 will be a hard year. Many experts claim that we haven’t touched the ground yet, and that the hardest moments of the global financial crisis will hit us in 2009. Almost every industry sector will suffer, they say. But financial experts wouldn’t be experts if they couldn’t find a sector that will do better than the others, and that will offer substantial returns to investors. Biotech is what they recommend.

Forbes interviewed two top-notch analysts in this area, Eric Schmidt and Ross Muken. They both agree that there is money to be made by investing in biotech.

“The industry outperformed in 2008, and looking forward there aren’t too many places where investors can go for very visible and somewhat significant growth. The profitable stocks in biotech are going to continue to provide that kind of opportunity,” said Mr. Schmidt. “True innovation and products with a more durable revenue stream are coming from the biotechnology side of the industry,” he says.
The first biotech stock that he recommends is Biogen Idec (BIIB), mainly because of two products — Avonex, a treatment for multiple sclerosis, and Rituxan, for cancer and autoimmune disease.
His second choice is Amgen (AMGN), because of a promising drug in development called Denosumab, a bone-building agent.

Ross Muken thinks that the genetic sequencing technology sector holds promise. “Across the globe we are going to see major investment from government and academic institutions in sequencing equipment. We will go from an environment where we have sequenced maybe 10 or 20 individuals to date to probably sequencing thousands next year,” says Muken.
Muken’s first choice is Thermo Fisher Scientific (TMO). His second pick is Illumina (ILMN). He also mentioned two more stocks that he thinks will do good during the coming period of time — MedAssets (MDAS) and Medco Health Solutions (MHS).

Source: forbes.com/business/2008/12/20/biotechnology-drugs-generic-bigcompanies08-cz_adm_1222drugs.html