I wanted to share some thoughts about high risk, high reward biotechs in 2011. Eighteen months ago at optionszone.com – on July 8, 2009 – I recommended five stocks, ostensibly involved in biotech but essentially cutting edge medical products companies.
Here is how they have done:
Cepheid (CPHD): Up 168% from $8.83 to $23.65
Cerus (CERS): Up 261% from $.86 to $3.11
Curis (CRIS): Up 127% from $1.33 to $3.02
Illumina (ILMN): Up 122% from $31.10 to $69.04
Questcor (QCOR): Up 202% from $5.06 to $15.29
Do I have your attention? All five of these stocks have legs but the run has been so great and grand for some of them I have modified the list for 2011. And, since the market has been kind to you the past twenty seven months, these are all very high risk, stop your heart stocks facing major binary events that could make or break the stock
Cerus (CERS): Cerus developed and markets the INTERCEPT system. It's a blood pathogen inactivation system to purify blood platelets. It is the only game in town and approved in most large European countries, it has been held up in the U.S. by an incredibly ridiculous FDA staff person even though it hit the primary end points in its pivotal phase III trial and gets grants from the U.S. military. INTERCEPT kills HIV, XMRV and a zillion other pathogens in the blood, making the blood platelet supply donor independent.
Cerus is working on developing an INTERCEPT system for whole blood and the program is on schedule and funded with a recent stock offering. Management has bumbled working with the FDA – they don’t fight back - but this will be fixed over time. There is no scientific or product risk in the stock and it is the number one medical products company pick for 2011 by Stephens & Company. The target price in 1-3 years is $14. Downside risk is market risk. I own the stock. (more)
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