The following is from the newsletter Biotechinsight…just another perspective…
One goal in a bad market is to stay with the small caps that offer upside with minimal risk. Last week I wrote about BioMarin (BMRN), which I consider in this category. Some readers have asked about Genaera (GENR), Repligen (RGEN) and Sonus (SNUS). I like all three stocks at these depressed prices but I consider SNUS to have the least risk. GENR will have some Phase II data by the end of the year and a lot will hinge on how that looks. If it mirrors the Phase I results but over a longer time course then I think the company has a winner but there is considerable risk—I am still keeping my position. The same holds true for RGEN. In this case the risk is in how the patent litigation plays out and whether BMS and Imclone negotiate settlements.
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