Biogen Idec Inc (BIIB) & TESARO Inc (TSRO): Top Biotech Stocks from Robyn Karnauskas Of Deutsche Bank

In the back drop of the biotech S&P ETF impacted by the S&P shedding market valuation by close to 7 % this week, Robyn Karnauskas who heads Deutsche Bank’s biotechnology vertical as its director spoke to CNBC and provided tips to investors on the likely biotech performers in the small cap and big cap categories in the immediate future.

Under the large cap category, Karnauskas mentioned the Cambridge headquartered Biogen Idec Inc (NASDAQ:BIIB) as a likely outperformer. She summarized that the impending launch of its much awaited haemophilia drug will drive up valuations in this drug maker’s stock. She went on to estimate that the price target on the stock of this $75 billion market capped firm would jump up in the $30 to $100 region per share, from its current valuations over the next two quarters, primarily driven by the underlying lower valuation of the stock.

Biogen Idec Inc (NASDAQ:BIIB)

Therefore, Karnauskas recommended the stock to investors by explaining that she foresaw “only upside on this stock.”  and no downside in the numbers. She further went on to underscore that the valuation jump “expectations are very low. Since the proof of concept for the biology here”

Under the small cap category, Karnauskas picked TESARO Inc (NASDAQ:TSRO), with a market cap of $1.14 billion. She listed out three key reasons as to why she thinks investors should buy into the stock at these levels.

The first point of attraction in the stock of TESARO Inc (NASDAQ:TSRO) for Karnauskas was the fact that the company is  expected to release a drug by the beginning of next year, on the back of strong clinical trial data.

The second point of import that Karnauskas pointed out was the fact that the company has a second drug candidate for ovarian cancer, which is also looking very promising and expects this to be launched next year.

She went on to predict that this drug has the potential to earn the company in the region of $200 million to $3 billion. She further highlighted the fact that TESARO Inc (NASDAQ:TSRO) has a exceptional management team, which has prior experience in growing drug firms and selling them at huge marked up pricing.  She also pointed that TESARO has a big chance to be a takeover target in the future.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!