From BMO today
Focus on Event-Driven Names in 2H13
The US biotechnology sector has outperformed the broader market in 1H13, with the NBI up ~41.0% versus +17.8% for the S&P. For the week ended July 12, 2013, the NBI again outperformed at +6.1% versus +3.0% for the S&P.
More recent investor tentativeness toward emerging macroeconomic headwinds and increasing crowding of key therapeutic markets have prompted focus on category "winners" in what we believe will be a period characterized by more divergent US biotech performance.
Following the recent proposed acquisition of ONXX by AMGN, we believe that large pharma and large biotech will also show increasing interest in key category "winners" with particular focus on cancer and orphan diseases.
We believe our top picks from a fundamental perspective are also most likely to attract M&A interest, and we highlight ARIA, REGN, ISIS, ICPT, RCPT, and HALO as potential category "winners" and potential acquisition targets.
We also expect 2H13 to be more volatile than 1H13 with greater focus on event-driven names, and key catalysts have provided in this report a detailed review of key volatility events for our 27 names under coverage as well as timing, hurdle rates, likelihoods and upside/downside potential.
News 
Market Data 
Discover 
