The Zacks Analyst Blog Highlights:Sanofi, Alnylam Pharmaceuticals, Alexion Pharmaceuticals, Gilead Sciences and Amgen

Mar 04, 2014, 09:30 ET from Zacks Investment Research, Inc.

CHICAGO, March 4, 2014 /PRNewswire/ -- announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Sanofi (NYSE: SNY-Free Report), Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY-Free Report), Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN-Free Report), Gilead Sciences, Inc. (Nasdaq: GILD-Free Report) and Amgen (Nasdaq: AMGN-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Are These Biotechs Part of Your Portfolio?

The biotech sector holds great promise and is expected to grow at a rapid pace driven by an aging population (major consumers of biotech drugs), launch of new drugs and label expansion of existing drugs.

The industry seems to be living up to its promise and is one of the hottest industries around judging by the strong performance of the NYSE ARCA Biotech Index (^BTK). The index has gained more than 65% in the last 12 months and approximately 20.2% since the start of the year.

The U.S. is a major producer of biotech drugs. We note that bringing biotech drugs  to the market is not a risk-free exercise and involves substantial investment.

Despite the risk involved in the development of biotech drugs, many leading pharma companies across the globe are looking towards biotech companies as they aim to bolster their sagging pipelines and sustain growth. This has given rise to significant merger and acquisition (M&A) and licensing activities. For example, Sanofi (NYSE: SNY-Free Report) recently expanded its agreement with Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY-Free Report) for the development of rare genetic diseases. Genzyme, Sanofi's subsidiary, has acquired a 12% stake in Alnylam through a $700 million investment.

Moreover, many small biotech companies have gone public of late -- another indication of the good health of the biotech sector.

3 Hot Biotech Stocks

With the earnings season almost over, it might be a good idea to look at a few biotech stocks which have performed well in the final quarter of 2013 and are expected to continue their strong performance in the coming quarters.

Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN-Free Report): Headquartered in Cheshire, CT, this Zacks Rank #1 (Strong Buy) company holds immense potential that can enrich your portfolio.

The company exited 2013 on a strong note with both earnings and revenues surpassing expectations. The company's 2014 guidance too is encouraging. The company has been delivering positive earnings surprises since the final quarter of 2010. Earnings estimates for this company have been on the upswing, having gone up by 39 cents and 75 cents for 2014 and 2015 respectively over the last 30 days.

Strong sales of the company's sole marketed product, Soliris, have contributed to the massive 103% price appreciation at Alexion over the last 12 months. Moreover, the company will be benefiting from lower tax rates. The company, with a long-term growth projection of about 29.1%, will be a nice addition to your portfolio.  We recommend that you make this high flying biotech stock a part of your portfolio.

Gilead Sciences, Inc. (Nasdaq: GILD-Free Report), headquartered in Foster City, CA, performed very well in the final quarter of 2013 beating the Zacks Consensus Estimate both in terms of revenues as well as earnings. The most promising development at this Zacks Rank #1 company has been the U.S. approval of potential blockbuster hepatitis C virus (HCV) therapy, Sovaldi, in Dec 2013. Sovaldi made a strong debut and recorded U.S. sales of $136.4 million in the fourth quarter of 2013.

The strong launch indicates continued outperformance in 2014. Sovaldi, with its high cure rates, a short treatment period and reduction/elimination of the need for interferon injections, has the potential to change the treatment paradigm in the HCV space.  

This company, with a long-term growth projection of approximately 34%, has seen the Zacks Consensus Estimate go up by 74 cents and $1.35 for 2014 and 2015, respectively over the last 30 days. The company, which looks well-positioned for growth driven by its strong product portfolio led by Sovaldi, has seen its price jump 93.7% over the last 12 months.

Amgen (Nasdaq: AMGN-Free Report): This Thousand Oaks, CA-based biotechnology company is our third pick. Amgen, a Zacks Rank #2 (Buy) company, posted strong fourth quarter results with a positive earnings surprise of 10.37%.

Fourth quarter total product revenues increased 11% from the year-ago quarter to $4,799 million with drugs like Neulasta, Epogen, Enbrel, Prolia and Xgeva driving growth. The company, with a long-term growth projection of about 7.8%, has seen the Zacks Consensus Estimate go up by 18 cents and 13 cents for 2014 and 2015, respectively over the last 2 months.

The share price of the world's largest biotechnology company has appreciated 37.9% over the last 12 months driven by strong product sales, positive pipeline developments and prudent acquisitions.

Bottom Line

We believe that the above-mentioned stocks, with their strong fundamentals and healthy growth prospects, will prove to be market winners representing good investment options. With the biotech industry representing solid growth potential, a sneak peek into the biotech space for some possible outperformers backed by a favorable Zacks Rank and positive earnings estimate revisions could be handy for investors.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on SNY - FREE

Get the full Report on ALNY - FREE

Get the full Report on ALXN - FREE

Get the full Report on GILD - FREE

Get the full Report on AMGN - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Logo -

SOURCE Zacks Investment Research, Inc.