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investing in biotech stocks

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    biotech stocks

    There are more than 1,000 biotech companies in North America alone. They cover a wide range of sectors including pharmaceuticals, biologics, generics, and medical devices.

    But finding the right stocks in such a broad industry is no easy task.

    That's why we've targeted the best biotech ETF to buy now. It offers investors an excellent way to play the entire industry, without having to pick a specific sector.

    Here’s the pick…

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Investing in Biotech Stocks: Use This One Simple Strategy to Limit Risk and Maximize Gains

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It's a common thought that investing in biotech stocks is just too risky for the average investor - but that's not the case.

It's true that biotechnology stocks can be very volatile - especially when companies have developmental drugs going through clinical trials - so they aren't the right stocks for every investor. But when investors are able to limit risk, they can find their portfolio's biggest profits from biotech.

Money Morning's BioScience Investment Strategist Ernie Tremblay recommends investors use this one simple strategy when investing in biotech.

It helps limit risk and maximize profits. Take a look…

Avoid These Biotech Stocks to Minimize Risk

biotech stocks

Investing in biotech stocks is risky for those who haven't done enough research. But with just a couple of tips, investors can drastically reduce the risk - and go on to benefit from massive windfalls generated by a company's breakthrough drug development.

To find out the best way to minimize risk in biotech investing, we turned to Money Morning's BioScience Investment Specialist Ernie Tremblay.

According to Tremblay, there are a couple of types of biotech stocks that are especially risky…

Our Worry-Free Way of Investing in Biotech

If there's one sector that's primed for explosive growth right now, it's biotechnology.

Its position as a new market leader in the tech sector cannot be overstated. Clearly, investing in biotech is an idea few can afford to ignore.

Genentech, the first biotech company, was formed in 1973 and was the first to go public in 1980, which launched the biotech sector.

Though the sector is only 33 years old, humans have been using varying forms of biotech for thousands of years, before anyone was investing in anything.

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Biotech Stock ETFs: How to Ride the Surge in Biotech Mergers & Acquisitions

Innovations in biotechnology are evolving at the speed of light.

In fact, astonishing advancements in biotech have transformed the way we practice medicine. Leading-edge biotech products and breakthroughs are literally saving thousands of lives every day.

Needless to say, biotech stocks can be strong medicine for investors, too.

For instance, the Nasdaq Biotechnology Index rose 457% from the end of August 1998 to the end of February 2000. Going back even further to the early 1990s, biotech stocks have soared by 1,347%.

Think about it... for biotech investors every $10,000 invested turned into nearly $140,000.

The good news for investors is that after slumping during the recession, biotech stocks are making a comeback. In the first quarter of 2012 alone, the Nasdaq Biotech Index gained 18.2%

And conditions are setting up for even better gains in the future.

Here's why...

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Investing in Biotech Stocks: The Latest Buyout Candidate

The biotechnology buyout binge continued this week, driving profits for those investing in biotech stocks.

The sector's latest M&A news picks up a story that began in April, when Human Genome Sciences (Nasdaq: HGSI), the U.S. pioneer of gene-based drug discovery, rebuffed a $2.6 billion bid from Britain's GlaxoSmithKline (NYSE ADR: GSK).

Human Genome argued the unsolicited bid did not reflect the company's inherent value. GSK adamantly insisted its bid, an 81% premium when settled upon on April 18, is full and fair.

UK-based GSK is not taking the rejection sitting down...

Investing in Biotech Stocks: The Buyout Binge Continues

The biotechnology buyout deals just keep coming, meaning those investing in biotech stocks have scored some juicy profits - with more on the way.

Watson Pharmaceuticals (NYSE: WPI) announced Wednesday it would buy competitor Actavis for $5.6 billion- the latest deal in an already-white-hot market for biotech buyouts.

In fact, get this: Although healthcare deals in the first four months of 2012 are down 32% on a year-over-year basis compared with the same period in 2011, biotech mergers-and-acquisition deals are up 38% so far this year.

And biotech merger mania is far from over.

AstraZeneca PLC (NYSE ADR: AZN) early Monday offered to pay $1.1 billion for Ardea Biosciences Inc. (Nasdaq: RDEA).

And Amylin Pharmaceuticals Inc. (Nasdaq: AMLN) - a San Diego-based diabetes drugmaker whose shares recently surged after allegedly spurning a $3.5 billion offer from Bristol-Myers Squibb Co. (NYSE: BMY) - appears to be seeking a buyer.

On Sunday, Reuters reported that Amylin has hired Credit Suisse AG (NYSE ADR: CS) and Goldman Sachs Group Inc. (NYSE: GS) as its financial advisers, and Skadden Arps as its legal adviser.

These deals have been going on all year.

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