Being long $ICPT is a bit like winning the lottery (with much better odds!) – there are so many BioTech stocks!.
If you want to get involved, here some good ones to look at. Prices are not cheap, but the stocks are at premium for a reason – this sector is making medical breakthroughs and the traditional pharma companies will start buying them up or merging.
$GILD – a 2CentView pick at 60 now $75 – FV Now $95. Focus: Hepatitis.
$CELG – FV=140 but this on a 24% implied Growth at 174, so not expensive in growth terms.
$BIIB – implied growth = 28%.
$REGN – the most expensive on a implied growth of 44%.
$ACOR – Acordia Theraptutics – FV=28 – Implied Growth 30% –
$UTHR – United Theraputics – FV=110 – implied Growth 15% – 2CentView top pick!
Companies with no positive EPS but have potential new break through drugs
$ICPT – intercept Pharma – the news their drug – which has the same structure as human bile acid, will go straight from trial to commercial use rocketed the stock!. BAML estimate of $400 is regarded as Conservative
$ISIS – RNA Research – new field of Research using Ribo Nucleic Acids
$CLVS – Clovis – BAML next potential $ICPT – anti cancer agents
Buy 2/3rds of your position in $GILD, $CELG or $UTHR : take profit 50% up, 25% down.
Buy 1/3 in one of $ICPT, $ISIS, $CLVS – Risk Reward: 3 to 1: take profit 70%, loss 35% down