BOSTON ( TheStreet) -- This week's Biotech Stock Mailbag opens with good news.
Sepgeninvestor writes, "Adam, I value your skepticism about biotechs in general. You saved me more times than I can count, but I wish you'd write more about the biotech stocks that you like. Are there any positive stocks you want to highlight for the end of the year?"
Valid criticism. Guilty as charged. I'm a glass-half-empty guy so focusing more on what's wrong in biotech is irresistible to me. In my defense, I will say that my early August call recommending Celgene (CELG) and Alexion Pharmaceuticals (ALXN) as a safer haven for biotech investors amid an ugly stock market turned out prescient and profitable.
Looking ahead, I'm most excited and optimistic about the prospects for Medivation (MDVN) and Targacept (TRGT) as each stock nears make-or-break releases of data from pivotal late-stage clinical trials.Medivation's BIG EVENT is the fourth-quarter interim analysis of the phase III "Affirm" study of MDV3100 in advanced prostate cancer patients who have progressed after chemotherapy. Positive results from the MDV3100 study propels Medivation's stock price into the high $20s or even $30s (depending on how good the data are.) Failure sends Medivation shares plummeting to around cash, call it $5-$6 a share.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV