Zacks.com releases the latest Analyst Interview. Today’s interview is with senior analyst Grant Zeng, who discusses Regeneron Pharmaceuticals (Nasdaq: REGN), ZymoGenetics Inc. (Nasdaq: ZGEN), Eurand N.V. (Nasdaq: EURX), Myriad Genetics (Nasdaq: MYGN) and BioMarin Pharmaceuticals (Nasdaq: BMRN).
A synopsis of today’s Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.
Would your advice to prefer biotech companies with products on the market still stand, or are there some companies with pipelines that are even more intriguing right now?
Before you invest in any biotech company, you need to do a comprehensive research about that company. When I say “comprehensive,” I mean there may be many criteria for your judgment. I certainly prefer a company with approved products on the market; in such a case, risk will be reduced.
Of course, the approved products must have a meaningful contribution to the company’s top-line growth. Sometimes, the pipeline is more important for a biotech company. Of course, the pipeline candidates must have potential if approved. One good example would be Regeneron Pharmaceuticals (Nasdaq: REGN). The company recently received approval of Arcalyst for the treatment of CAPS. Since CAPS is a rare genetic disease, the market for it is very small.
We believe Arcalyst will only have limited impact on the company’s top line growth in 2008 and beyond. However, the company has a decent pipeline with great potential in cancer, eye disorder and other inflammatory diseases. In such a case, the pipeline is more important than the approved product.
What are your top Buy recommendations at this time?
My top picks of biotech companies are Regeneron, ZymoGenetics Inc. (Nasdaq: ZGEN), Eurand N.V. (Nasdaq: EURX), Myriad Genetics (Nasdaq: MYGN) and BioMarin Pharmaceuticals (Nasdaq: BMRN).
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