Spark Therapeutics, BioMarin Can Still Catch Fire Despite Biotech Bubble Talk

Biotech valuations may be relatively high in some cases, but on the whole they are not overly stretched and certainly not in bubble territory, said Marshall Gordon, Senior Research Analyst at ClearBridge Investments. Gordon added that his top biotech picks are Biogen Idec (BIIB) and BioMarin Pharmaceutical (BMRN). He is also positive on shares of Spark Therapeutics (ONCE), which proved to be the top IPO winner in the first quarter with a 237% return. As for which big pharma players will fare best in the coming months, Gordon says the winners will be those companies that repeatedly deliver encouraging clinical results like Bristol-Myers Squibb (BMY) did last month with its advanced lung cancer drug Opdivo.