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Biotech valuation concerns 'misguided,' says Piper Jaffray $ALNY $ALXN $AMGN $BIIB $BMRN $CELG $INCY $ISIS http://bit.ly/1GYDSdl

Analyst calls sharp pullback in biotech stocks 'misguided'

The decline in biotech stocks, which began yesterday and is continuing today, is "misguided," according to Piper Jaffray. WHAT'S NEW: Noting that a similar decline in biotech stocks started a little over one year ago, Piper Jaffray analyst Joshua Schimmer wrote that, as was the case last year, he believes that the sector's fundamentals are strong. Biotech stocks turned in a "stellar" performance last year, and the story should be similar in 2015, once the current round of selling ends, Schimmer contended. Earlier this month, the analyst wrote that growth biotech names, including Celgene (CELG), Biogen (BIIB), and Alexion (ALXN), all have attractive valuations compared with growth names in other sectors. There are, however, a number of larger cap biotech stocks that are either unprofitable or are just starting to become profitable, the analyst stated. However, these companies still have strong drug pipelines, solid longer term earnings potential, and may become M&A targets in the future, Schimmer stated. He identified the following companies as being in this category: Alnylam (ALNY), BioMarin (BMRN), Incyte (INCY), Isis Pharmaceuticals (ISIS) and Vertex Pharmaceuticals (VRTX). PRICE ACTION: In early trading, Celgene (CELG) rose 1% to $118, Biogen fell 1% to $428, Alexion was flat at $175, Amgen was flat at $160, Alnylam fell 1% to $101, BioMarin dropped 3% to $112, Incyte lost 1% to $90, ISIS sank 3.5% to $60 and Vertex declined 1.3% to $117.