Jim Birchenough, M.D., is a Managing Director at BMO Capital Markets and is their senior biotechnology analyst. In an interview less than a year ago, he named Onyx Pharmaceuticals (ONXX) as one of his top midcap picks. Since Onyx just announced its acquisition by Amgen (AMGN), I thought I would take a look at the other recommendations from the good doctor.
In an astonishing group of buy calls in his interview, the other biotech stocks in his recommended portfolio have an average return of over 30%.
| Company | Ticker | 9.17.12 Price | 9.9.13 Price | Change |
| Celgene | CELG | $76.81 | $148.24 | 86% |
| Gilead | GILD | $32.90 | $62.08 | 95% |
| Regeneron | REGN | $149.71 | $274.00 | 83% |
| Onyx | ONXX | $81.26 | $124 | 52% |
| United Therapeutics | UTHR | $58.08 | $74.12 | 27% |
| Ariad | ARIA | $23.50 | $22 | (2)% |
| Synta | SNTA | $7.99 | $6.62 | (17)% |
| Rigel | RIGL | $10.30 | $3.77 | (63)% |
| Isis | ISIS | $14.46 | $31 | 110% |
This amazing rate of return is even more impressive when considering that the small-cap stock picks pulled down the average. Rigel in particular proved to be the loser of the bunch and has recently hit new lows due to the failure of its asthma drug to prove itself during trials. This comes on top of its partner AstraZeneca (AZN) pulling the plug on its promising rheumatoid arthritis medication after disappointing trials as well.
FOR MORE TOP BIOTECH STOCK PICKS PLEASE CLICK HERE.
The top picks are all highly liquid stocks, so investors have the best of both worlds, a stunning investment with the ability to exit at propitious moments, such as when a company like Onyx gets a definitive offer by Amgen.
Birchenough’s continued success will be decided on additional validation of his investment thesis:
“I think the biggest things thematically that we’re seeing from a technology perspective is continued focus on molecular diagnostics guiding molecular therapeutics in oncology, in particular. And so what we’re starting to see is companies succeeding at identifying key drivers of cancer-cell growth, identifying with diagnostics what those drivers are, and targeting those patients specifically with highly effective drugs.”
Only additional returns will create proof of Dr. Bircenough’s stock picks. So if you missed his prescient calls last time, you might be motivated to pick up the phone and make an appointment for a house call to discuss his current predictions. After all, its not every day that ordinary investors have access to venture-capital-type returns.
Please note that Gilead has had its stock split 2:1 in the period measured.
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