Xofigo is meant to treat metastatic prostate cancer, but only cancers that have spread into the bones rather than into other organs. The treatment also is approved only for those who have received other therapies aimed at lowering testosterone. The drug is designed to help deliver radiation directly to bone tumors, limiting damage to other tissue and organs. The drug was originally called Alpharadin or radium-223 chloride.

What is interesting is that this approval appears to be about three months ahead of the drug approval deadline in August. The FDA had granted a priority review status to Bayer and partner Algeta in Norway.

Today’s approval should only be a surprise as far as the timing is concerned. Bayer and Algeta ended the late-stage study as its independent monitoring committee determined that the drug already met its primary endpoint and increased the overall survival by 44%, raising the median average to 14 months versus 11.2 months in the placebo group. The drug also lowered pain in the bones for patients.

Dendreon investors already felt the bulk of their pain. Now the stock is still up by $0.01 at $4.18 on 3.1 million shares. Its 52-week trading range is $3.69 to $9.03. Again, the big surprise here is the timing of the FDA approval rather than the FDA drug approval itself.

They point to five specific reasons for this conclusion:

1. Recent outperformance in past two years was recovery from prior year weakness.
2. Biotech has been outperforming S&P only since the first quarter of this year.
3. Despite price-to-earnings expansion, multiples are well below precrisis levels.
4. Current multiples look significantly below the last known bubble.
5. Current multiples also are well below the average price-to-earnings in the period from 2005 to 2008.

Even though biotech currently trades at a 50% premium to the S&P 500, the Deutsche Bank team has a list of solid stocks to buy now.

Amgen Inc. (NASDAQ: AMGN) is a top stock to buy at Deutsche Bank. With a gigantic pipeline and solid earnings growth, this biotech leader is poised to succeed for years to come. Deutsche Bank has a $115 price target. The Thomson/First Call estimate is also at $115. Investors receive a 1.80% dividend.

Celgene Corp. (NASDAQ: CELG) hit a new 52-week high yesterday. The company recently reported  data from its ongoing phase III trial of apremilast this month, showing the drug successfully reduced psoriatic arthritis symptoms by at least 20% versus a placebo. Deutsche Bank has a $143 price target. The consensus target is at $140.

Biogen Idec Inc. (NASDAQ: BIIB) is another massive mega-cap name that makes the list of stocks to buy. Biogen Idec discovers, develops, manufactures and markets therapies for the treatment of neurodegenerative diseases, hemophilia and autoimmune disorders in the United States and internationally. The Deutsche Bank target for the stock is $240 and the consensus estimate is $226.

Gilead Sciences Inc. (NASDAQ: GILD) has been recording good growth numbers. The market is apparently anticipating further increases in earnings in the future, given the higher trailing price-to-earnings ratio. The Deutsche Bank price objective is $69 and the consensus is lower at $63.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is another name that has been on a huge roll. Regeneron is an integrated biopharmaceutical company that focuses on development of new candidates for serious ailments primarily in areas like ophthalmology, inflammation, cancer and hypercholesterolemia. Deutsche Bank has a $310 target, while the consensus is at $288.50.

Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) is another company with huge momentum. For its most recent quarter, Onyx delivered a doubling in revenue to $145.5 million from $72 million in the previous year, with practically all the gains coming from their multiple myeloma drug Kyprolis. The Deutsche Bank target price for the stock is $105. The consensus is $106.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) is a leader in the fight against hepatitis C (HCV) infection. The company also has a groundbreaking drug for the treatment of cystic fibrosis. Deutsche Bank has a $100 price target for the stock. The consensus is at $93.

Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) has also been on fire lately. Soliris, its lone drug approved by the Food and Drug Administration, saw sales rise by 38% to $338.9 million in its most recent quarter, as non-GAAP net income jumped 49%. The Deutsche Bank target is $117 and the consensus is actually higher at $120.50.

Investors that buy any of these names are immediately becoming momentum players, looking to buy high and sell higher. Each of the Deutsche Bank stocks to buy either has a tremendous portfolio and pipeline or a blockbuster drug that dominates its niche. These stocks may represent the best bets that the biotech sector has to offer.

What is interesting is that the news came at close enough to the same time that Genomic Health Inc. (NASDAQ: GHDX) filed to sell up to 10 million shares of common stock. That company is planning to raise the funds for general corporate purposes, which include working capital, capital spending, debt repayment or redemption, and future acquisitions and strategic investment opportunities.

Myriad Genetics has been at the center of much controversy because it has been in legal fights for years to protect that patenting of certain genes. By going after patenting the genes themselves, the argument was that Myriad was trying to own a piece of each and every one of us rather than merely patenting how it would identify certain genes or how to treat those genes.

Myriad shares are up 2.1% at $33.81 and the stock hit a new 52-week high of $34.67. Genomic Health Inc. is up 2.1% at $35.56 on the day. A much smaller player is Rosetta Genomics, Ltd. (NASDAQ: ROSG), but its shares have not felt the same reward and interest has avoided the highly volatile stock name as it has lost more than 80% from its peak value in the last year.

In a recent report, Jefferies analysts did a careful stock-by-stock analysis, looking at items as different as government reimbursement and current short interest. When reviewing short interest, they generally concentrated on two primary metrics: the actual number of shares sold short as percentage of the float and the short interest coverage ratio (the number of trading days needed to cover the outstanding short interest position). What they came up with is the following list of stocks that investors can look to buy now.

Agilent Technologies Inc. (NYSE: A) leads off the Jefferies list of stocks to buy. The company  provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications and electronics industries worldwide. The Jefferies price target is $50. The Thomson/First call estimate is close at $49. Investors are paid a 1.20% dividend.

Align Technology Inc. (NASDAQ: ALGN) recently won a big patent infringement case against a rival in the dental field, ClearCorrect. The Jefferies price target for the stock is $36. The consensus estimate is the same at $36.

Becton, Dickinson and Co. (NYSE: BDX) manufactures flow cytometry and cell-imaging systems, among other products in the medical field. The company’s strong brand and economies of scale have allowed it to earn outsized profits for many years. Jefferies has a price target of $110. The consensus price target for the stock is much lower at $94. Investors receive a 2% dividend.

Danaher Corp. (NYSE: DHR) designs, manufactures and markets professional, medical, industrial and commercial products and services primarily in North America, Europe and Asia/Australia. The Jefferies target for this stock, which is well followed on Wall Street, is $70. The consensus target is $68.

Exact Sciences Corp. (NASDAQ: EXAS) is a very volatile small cap name that makes the Jefferies list. The company is a molecular diagnostics company, focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer. The Jefferies target for this very speculative name is $12, but the consensus is even higher at $13.50.

Myriad Genetics Inc. (NASDAQ: MYGN) has been hitting 52-week highs recently. Myriad focuses on the development and marketing of predictive, personalized and prognostic medicine tests, primarily in the United States. Jefferies has a price target of $31. The consensus target is right in line at $31. The stock closed above that on Friday.

Nanosphere Inc. (NASDAQ: NSPH) is a micro-cap name that makes the stocks to buy list. The company beat revenue expectations and reaffirmed 2013 guidance last week. The Jefferies price objective is $3.50. The consensus is also $3.50.

OraSure Technologies Inc. (NASDAQ: OSUR) is another micro-cap name to buy. The Jefferies price target for the stock is $12. The consensus is $10. Hitting either target is a gain in excess of 100%.

DENTSPLY International Inc. (NASDAQ: XRAY) wraps up the Jefferies list of stocks to buy. The company designs, develops, manufactures and markets a range of consumable dental products for the professional dental market worldwide. The Jefferies target is $44, and the consensus is $44 as well.

Despite ongoing worries about the effects of the Affordable Health Care Act (so-called Obamacare), many of the Jefferies stocks still have compelling business plans and earnings. Investors should also use their own due diligence when considering these names for their portfolio.

Our take is worse than income being lower than expectations. Dendreon said that net product revenues fell to $67.6 million, compared to $82.0 million for the same quarter a year ago. Dendreon is supposed to be seeing sales decline marginally now and then rise through time, but this is down a sharp 17.6% year over year. Here are the total revenues in each of the past four quarterly reports, in order of most recent first: $85.493 million, $77.971 million, $79.992 million and $82.074 million. Compare $67.6 million to these and you will see that sales were the worst over the entire quarterly cycle course of 2012.

Thomson Reuters was calling for -$0.48 per share in earnings and sales of $80.15 million. Some analysts were calling for sales up in the $85 million and $86 million range. The long and short of the matter is that it is just far too soon for Dendreon’s sales cycle to already be petering out.

Dendreon claims to have added 33 net new accounts in the first quarter. This brings the total number of accounts that have infused to 835. Dendreon is claiming that it can reduce its cost of goods sold to less than 50% of net product revenue in the third quarter 2013 at its current forecast levels.

You might expect that the reaction is bad, and that is an understatement. Dendreon’s stock price is down more than 15% to $3.99, against a 52-week range of $3.69 to $9.34. Note that the market cap here is down to $711 million. With the company losing so much money, it will be very hard to get excited that it had $337.3 million in cash, cash equivalents and short-term and long-term investments at the end of the quarter. Keep in mind that this balance compared to $429.8 million as of December 31, 2012, and that translates to a quarterly cash burn rate of about $92.5 million.

Our take here is simple, even if the end game is uncertain. Dendreon’s cash burn rate puts it at financial implosion in less than a year. The company claims that its cost of goods sold will be much lower, but if it cannot generate a substantial amount higher in Provenge sales, then the company is going have to try to save itself by selling itself. Unfortunately for shareholders, this might be a takeunder, unless Provenge proves to be potent against other forms of cancer than just late-stage prostate cancer.

Doctors miss roughly one day every four months due to illness. Those working in the service industry, on the other hand, miss almost one day every two months. These are the jobs in which workers take the most and least sick days.

Click here to see who takes the most (and fewest) sick days

It would make sense that Americans miss work days because they are sick. And to some extent that is true. Physicians, who miss by far the least amount of work due to sickness, are by far the healthiest. However, doctors appear to be an exception.

In fact, some of the professions that rarely call in sick are among the least healthy. More people working in the farming, forestry and fishing industry have health problems preventing them from doing things appropriate for their age group than any other occupation, according to the study. Despite their poor health, they miss an average of just one day every four months, the second least among the 14 job categories measured. Meanwhile, nurses, clerical workers and service workers report average or above average health but miss the most days from work due to illness.

Unreliable salary also makes it less likely that workers will take time off. Many professions that miss relatively more days, such as nurses and office workers, are often salaried positions with allotted sick days. Workers in installation and repair jobs, who miss relatively little time, are much more likely to be paid per service roles. “If you’re in a low income situation that is coupled with a job that requires punching in,” Gallup’s Dan Witters suggested, “you’re going to be highly motivated to show up for work whether you’re in good physical health or not.”

Based on data provided by Gallup-Healthways as part of their Well-Being Index survey, 24/7 Wall St. reviewed the average number of days per month missed because of poor health in each of 14 major professional categories. We reviewed a variety of other data provided by the group as part of its 2012 Well-Being Index. The data are based on a survey of 94,000 Americans between January 2 and September 10, 2012. All responses are for those who worked 30 hours or more per week.

A new list compiled by Drugs.com for the first quarter of 2013 shows that all but one of the seven drugs with $1 billion in quarterly sales saw total sales gains. Only three of the wider list of the top 20 drugs in quarterly sales posted negative sales trends. You will notice that many of the drugs had negative unit (prescriptions) trends again in the first quarter, but this was seen by and large a year ago as well.

We used data from Drugs.com, and this represents the top-selling drugs and medicines measured as U.S. national sales through both retail and hospital channels. This list is for the first quarter of 2013, and we have provided an image of the top drug sales on a chart below.

Abilify by Otsuka Pharmaceutical Co. led the list, at $1.526 billion in quarterly sales with a 3.24% gain. What is interesting here is that the number of units sold in the quarter was shown to be down by 5.89% to 2.477 million units sold, despite a continual rise in total sales. This will seem sad to be the list leader to many people, because Abilify is prescribed as an add-on drug treatment for adults with unresolved symptoms of depression after at least six weeks on an antidepressant. It is also meant to be taken in addition to an antidepressant rather than as a standalone drug.

Nexium by AstraZeneca PLC (NYSE: AZN) was second on the list, at $1.458 billion in quarterly sales with a 1.21% gain. After a small uptick in dollars sold, there was actually a small drop of 2.47% in units to 6.667 million units in the quarter. Nexium is known as the Purple Pill to treat heartburn caused by acid reflux.

Cymbalta by Eli Lilly & Co. (NYSE: LLY) came in third on the list, with $1.296 billion in quarterly sales after a 5.65% gain. Cymbalta units fell by 2.09% to 6.502 million units. Cymbalya is meant to treat major depressive disorder (MDD), generalized anxiety disorder (GAD), for the management of diabetic peripheral neuropathic pain and fibromyalgia, and to manage chronic musculoskeletal pain due to chronic osteoarthritis pain and chronic low back pain.

Crestor by AstraZeneca PLC (NYSE: AZN) was fourth, with quarterly sales of $1.295 billion after a 1.59% gain. Unit sales were down by 2.93% to 4.106 million units in the first quarter. Crestor is prescribed (along with diet) to lower high cholesterol and to slow the buildup of plaque in arteries.

Advair Diskus by GlaxoSmithKline PLC (NYSE: GSK) came in at number five, at $1.277 billion in sales after a 6% rise. This was the first of the list with a per unit gain, with sales up 1.81% to 5.959 million units. Advair Diskus is for the treatment of asthma in patients four years and older. It is approved for adults with chronic obstructive pulmonary disease (COPD), including chronic bronchitis, emphysema or both.

Humira by Abbott Laboratories (NYSE: ABT) was ranked number six, with $1.217 billion in quarterly sales after a 0.91% gain. This drug’s unit sales were down by 5.68% to 631,000 units in the first quarter. Humira is prescribed for moderate to severe rheumatoid arthritis, moderate to severe chronic plaque psoriasis, moderate to severe Crohn’s disease, moderate to severe ulcerative colitis, ankylosing spondylitis, psoriatic arthritis and in moderate to severe polyarticular juvenile idiopathic arthritis.

Enbrel by Amgen Inc. (NASDAQ: AMGN) was the last of the top seven drugs with sales of more than $1 billion, at $1.075 billion in quarterly revenue. This was also the sole drug on the list that had a decline in total dollar sales, with a 1.22% drop. Enbrel even led the top drugs here on this list with a 6.83% decline to 969,000 units sold. Enbrel is indicated for moderate to severe plaque psoriasis, psoriatic arthritis and moderate to severe rheumatoid arthritis.

You probably noticed that there was a steady decline in unit sales in the first quarter. In most cases, this was also the case in the first quarter of 2012. It seems that the trend can be influenced by timing as well as by rotational use or by the public’s routine annual changes, more so than drug companies arbitrarily raising their prices each year to make up for lower unit sales.

We also have two runner-ups here that are close to $1 billion in quarterly sales. Remicade from Johnson & Johnson (NYSE: JNJ), under the old Centocor and Janssen unit, posted a 3.58% sales gain to $969 million. Copaxone from Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) posted a 1.98% sales gain to $926 million.

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Before calling it a bubble, there are many things to consider. While there are some major ETFs in the sector, we have noted previously how these biotech ETFs are often misrepresented by their name, given the weightings and stocks they hold. Another issue is culling out the risky one-candidate companies from the established biotech leaders. A long-term comparison also can be made to drug giants for relative valuation and for dividends.

As far as why we are asking if a bubble is forming here, it is not just because these stocks have performed well. The four major U.S. biotech players are Amgen Inc. (NASDAQ: AMGN), Biogen Idec Inc. (NASDAQ: BIIB), Celgene Corp. (NASDAQ: CELG) and Gilead Sciences Inc. (NASDAQ: GILD). All four companies hit new all-time highs this last week.

24.7 Wall St. is taking a look at each for valuation metrics by market capitalization, forward earnings multiples, sales and earnings growth expected, and paring up the current stock price against the Thomson Reuters consensus price targets from Wall Street analysts.

Before we get into biotech, Pfizer Inc. (NYSE: PFE) and Merck & Co. (NYSE: MRK) need to be evaluated. Both drug giants were trading very close to multiyear highs going into earnings this week. Somehow the market did not anticipate that both companies were going to offer muted guidance ahead. Merck is now down almost $4 from its 52-week high of $48.78, and Pfizer is down more than $2 from its 52-week high of $31.15. Both stocks trade at 12 or 13 times the projected 2013 earnings estimates from Thomson Reuters.

What sets Big Pharma stocks apart from biotech stocks is that there is just no revenue growth expected this year, or next even, if the so-called patent cliff woes are mostly behind these companies. Pfizer’s common stock dividend yield is 3.2%, versus 3.6% for Merck. Only one of the major biotechs (Amgen) pays a dividend as the sector is still tracking for growth.

Amgen Inc. (NASDAQ: AMGN) took a beating after its earnings report last week. Even after being added to the Conviction Buy List at Goldman Sachs, the biotech giant is up 2% at $106.25 after a recent all-time high of $114.95. The firm’s price target is $130 now, with a consensus target from analysts down at $111.36 and a street-high target of $133 for Amgen. It took a sell-off for this stock to get back under the consensus price target. Amgen shares are still up 24% so far in 2013 after the recent sell-off. The good news is that Amgen trades at about 14.6 times expected earnings this year, but the bad news is that sales growth is projected to be less than 5% for this year and next. Amgen is not really expensive for a biotech stock, but it is missing that monster growth. Amgen also acts like a new Big Pharma stock now that its dividend yield is 1.8%.

Biogen Idec Inc. (NASDAQ: BIIB) is now down $10 from its recent all-time high of $226.18. It was removed from Goldman Sachs’ Conviction Buy List, but at $216.25 its consensus price target is all the way down at $202.56. Biogen’s multiple sclerosis franchise is now approaching a total domination in the field. It pays no dividend but is expected to post 16% to 17% sales growth in both 2013 and 2014. The problem that investors may face going forward is that valuation is stretched at more than 27 times the consensus 2013 earnings estimate, since this stock has risen a whopping 48% so far in 2013.

Celgene Corp. (NASDAQ: CELG) is down just over $10 per share from its recent all-time high of $128.52. The consensus price target of $124.69 is also under the most recent high, while the street-high price target is up at $143.00. What Celgene has going for it is that some market pundits expect its earnings to double by 2015 to 2016. Sales are expected to rise more than 10% for at least the next two or three years, as well. That being said, Celgene trades at about 21 times expected 2013 earnings estimates, now that shares have risen a whopping 50% so far in 2013.

Gilead Sciences Inc. (NASDAQ: GILD) is down about $5 from its recent all-time high of $55.16. Gilead trades at about 25-times expected 2013 earnings, and its shares are up by 37% so far in 2013. The consensus price target is above the prior high at $58.20, and the highest target price is around $70 for the HIV drug leader. Sales continue to grow in the double-digits and are expected to maintain that path for at least the next two years.

Now before you run off scratching your head, there are the market capitalization figures to consider, versus $208 billion for Pfizer and $138 billion for Merck. Amgen is king at about $80 billion as of now, and it seems to be the first biotech that could ultimately reach the mega-cap class at $100 billion. The problem with thinking Amgen will be first is that analysts project more upside and growth at Gilead, and its market cap is almost $77 billion. Biogen Idec is worth more than $51 billion and Celgene is worth about $49 billion.

Biotech stocks have performed incredibly well so far in 2013. For value-oriented investors, these still need to soften up in price. For investors who chase growth at any price, there is still some perceived upside. The good news is that biotechs have pulled back and now Big Pharma stocks have all pulled back. The bad news is that if the market does not keep rising, it is very likely that investors will look for more patient entry points before chasing these high gains and valuations in biotech.

For those looking for undervalue growth with more risk, a firm called PropThink has just issued a list of biotech stocks that it feels are not represented with proper valuations (yet) by the market.

One more issue we noted in much more detail in our ETF Folly for Biotech ETFs is that the exchange traded fund universe is very underrepresented in this sector, regardless of valuation analysis. The top ETFs here are the iShares Nasdaq Biotechnology (NASDAQ: IBB), SPDR S&P Biotech (NYSEMKT: XBI), First Trust NYSE Arca Biotech Index (NYSEMKT: FBT) and the Market Vectors Biotech ETF (NYSEMKT: BBH). Note that the combined market capitalizations are not quite 2% of the combined market valuations of just the top four biotech stocks.

Biotech stocks often hinge on what is known as a binary event. That can be anything from a pending drug approval to a buyout by a larger company. It takes solid research to size up the odds of such an event, so investors know which names to consider.

In a recent report, the research team at Propthink highlighted some solid biotech names for investors to consider. It is important to remember that capital in any portfolio dedicated to biotech names should be considered speculative. It can sometimes take years for a catalyst or major binary event to propel biotech stocks higher.

Illumina Inc. (NASDAQ: ILMN) has been on the radar screen since last year. This maker of DNA sequencing equipment was almost purchased by Roche Holding earlier this year. Its tremendous earnings ability combined with the possibility that Roche returns to the table keeps this stock in play. The Thomson/First Call consensus is $60.50.

Keryx Biopharmaceuticals Inc. (NASDAQ: KERX) has had investors on a roller coaster for the past six months. The nice run by Keryx was powered by high expectations for its kidney disease drug Zerenex. Some analyst have been concerned over the patent estate at Keryx, but the Propthink team feels very comfortable with it. The consensus price target for the stock is $14.

Exact Sciences Corp. (NASDAQ: EXAS) phase 3 trial for its colon cancer detection test passed, but the stock dropped 20%. The test worked, but the detection rate was 42% lower than a colonoscopy. With $100 million in the bank and often rumored as a takeover target, Exact Sciences is a volatile name. The consensus price target is $13.50.

AVEO Pharmaceuticals Inc. (NASDAQ: AVEO) is a micro cap name that has also seen its share of volatility. According to briefing documents released yesterday, it appears that the FDA may want AVEO to run an additional trial to confirm the added benefit of its cancer drug Tivozanib, based on that reduction in overall median survival noted during the study. AVEO meets with the FDA tomorrow and that could be a tipping point. Consensus price target for the stock is $11.50. That would represent a 100% move from current trading levels.

Endo Health Solutions Inc. (NASDAQ: ENDP) has been a very strong stock recently. The FDA has barred generic drug companies from selling older formulations of the painkiller Oxycontin. Endo Health is marketing its new tamper-resistant formulation of Opana ER (oxymorphone) as an alternative, which may prove to be a strong challenger. The consensus price target for the stock is $35.50.

Biotech investing can prove to be a very challenging arena for investors. It can also be one of the stock markets most profitable areas. Look for stocks that have multiple drugs or procedure applications in their pipeline or currently on the market. Also look for companies that have enough cash to survive the testing and approval process.

Today’s dividend hike actually is better than what we expected when we predicted the hike was on its way. At that time my projection said, “J&J looks to be a shoe-in for a higher dividend in 2013. Our first guess is that the dividend will move up from $0.61 per share per quarter to $0.65, with a possibility of $0.66 being seen.”

At the new rate, the indicated dividend will rise to $2.64 per share, compared to the previous rate of $2.44 per share, on an annualized basis.

Johnson & Johnson’s dividend increase was announced this morning at the annual meeting of shareholders. The next quarterly dividend is payable on June 11, 2013, to shareholders of record as of May 28, 2013, and this ex-dividend date is May 23, 2013. With shares trading at about $85.00 and less than 1% under its recent all-time high, that new dividend yield will rise to 3.10% for new investors from 2.87% before the hike.

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Chairman and CEO Alex Gorsky said, “In recognition of our strong financial position and confidence in the future of Johnson & Johnson, the Board has voted to increase the dividend for the 51st consecutive year.”

Johnson & Johnson stock is up 0.7% at $85.01, against a 52-week trading range of $61.71 to $85.68.