Cephalon ( CEPH)

Founded in 1987 as a biotech startup, Cephalon has emerged as one of the world's top 10 biopharmaceutical companies, with an impressive roster of first-in-class products, and total revenue of $2.19 billion in 2009. The company's portfolio includes treatments for central nervous system disorders, pain and cancer. Cephalon boasts eight proprietary products in the U.S., along with more than 100 products internationally.

The company's stock performance over the past 12 months, however, has been nothing to brag about, with its shares falling over 6%. Nevertheless, Auer expects that to change in the coming year.

"Cephalon's stock has been slightly down in the past year, yet the 2010 estimates by a consensus of 26 analysts has risen to $7.80 per share from $6.03 in 2009. Meanwhile, sales are expected to jump 26% to $2.77 billion and with a market cap of about $4.5 billion, this company is very digestible for one of the bigger players," says Auer.

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