This Day On The Street
Continue to site
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

10 Biotech Stock Predictions for 2012

Update: Please submit your own 2012 biotech stock predictions at the end of this story.

BOSTON ( TheStreet) -- Ten biotech predictions for 2012:

1. The Amgen (AMGN) strategy of returning cash to shareholders in form of share buybacks, Dutch tender offers and dividends is abandoned in favor of ramped up acquisitions i.e. Gilead Sciences (GILD) buying Pharmasset (VRUS). Large-cap biotech firms start acting like Big Pharma -- choosing to buy growth instead of seeking it from internal drug development.

2. After much wrangling, lawmakers pass important PDUFA V legislation but it's amended to prohibit FDA from issuing drug approval decisions on Friday evenings.

3. Cancer immunothera-flop: Phase III cancer "vaccine" studies being run by Merck KGaA and Oncothyreon (ONTY) (Stimuvax in non-small cell lung cancer) and Vical (VICL - Get Report) (Allovectin in melanoma) both fail. The only positive clinical news in cancer immunotherapy in 2012 will come from GlaxoSmithKline (GSK) with its Mage-A3 therapy, in phase III for melanoma.

4. By the end of the year, one or more of these companies will be gobbled up in an M&A deal: Seattle Genetics (SGEN), Celgene (CELG - Get Report), Biomarin Pharmaceuticals (BMRN), Amag Pharma (AMAG), Onyx Pharma (ONXX), Momenta Pharma (MNTA - Get Report)

5. Cell Therapeutics (CTIC) exits 2012 the same way it started -- with pixantrone still not approved anywhere. The only changes at the company will be to its share count and executive compensation -- both higher; and stock price -- lower.

6. Roche (RHHBY) doesn't buy Aeterna Zentaris (AEZS - Get Report) despite a half-dozen additional Seeking Alpha articles penned by "Jeremy Richards" claiming otherwise.

7. Leucovorin shortages end, so too does Spectrum Pharma's (SPPI) fairytale ride.

8. Vertex Pharma's (VTX) cystic fibrosis drug Kalydeco will be approved. More importantly, studies testing Kalydeco combined with other Vertex's cystic fibrosis drugs will show strong benefit in a larger swath of patients. Vertex becomes a cystic fibrosis company. Hepatitis C? What's that?

9. FDA rejects obesity drugs from Arena Pharmaceuticals (ARNA - Get Report) and Vivus (VVUS) for a second time.

10. Celgene (CELG - Get Report) will be the best-performing large-cap (market cap greater than $10 billion) biotech stock in 2012.

Happy 2012! If you have predictions of your own for the coming year, please share in the comments section below.

Here's a look back at how well my 2011 predictions fared:

1. Cell Therapeutics will increase its share count to 2 billion, followed by a 60:1 reverse stock split. Pixantrone still isn't approved.

Correct. My numbers were off a bit. Cell Therapeutics didn't bloat its share count quite that high but came close. Pixantrone still not approved.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AEZS $3.77 -3.80%
ARNA $1.68 -1.80%
CELG $103.90 -1.00%
MNTA $9.39 -3.80%
ONTY $1.24 -3.10%


Chart of I:DJI
DOW 17,752.14 -139.02 -0.78%
S&P 500 2,065.06 -16.37 -0.79%
NASDAQ 4,775.9440 -41.65 -0.86%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs