This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Essential Biotech Sector Fall Preview

Stocks in this article: DNDNHGSIGENZARNAAMLNIDIXPCYC

BOSTON ( TheStreet) -- Labor Day is over and Hurricane Earl is out to sea, which means Wall Street is returning to work in earnest for the last three months of the year.

To put everyone in the right mindset, I've compiled a "Back to School" guide covering the essential information biotech investors need to profit from what should be a very busy fall season.

Before we look ahead, take a quick look at the year to date. The Nasdaq Biotechnology Index (NBI), a market-cap weighted index of 125 stocks and the broadest measure of biotech sector performance, is essentially flat for the year compared to a 1% drop in the S&P 500 (see graph above).

The Amex Biotechnology Index (BTK), which equal weights 20 stocks, is up 18% for the year, although the acquisitions of index stocks OSI Pharmaceuticals and Millipore, plus the surge in Genzyme (GENZ) shares due to the Sanofi-Aventis (SNY) takeover speculation, have skewed the index higher.

The top-performing biotech/drug stock so far this year is Somaxon Pharmaceuticals (SOMX), up 245% through Sept. 2. Somaxon's stellar performance comes despite a fall in the stock's value from $10 in March to $4 in September. Somaxon wins, however, because shares traded for just a buck in January.

Rounding out the top five stop biotech stock performers in 2010 to date are Radient Pharmaceuticals (RPC) (up 192%), Idenix Pharmaceuticals (IDIX) (up 176%), Prolor Biotech (PBTH) (up 155%) and Pharmacyclics (PCYC) (up 142%). (Stocks trading on the OTC or Pink Sheets were excluded.)

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs