3 Top Jefferies Biotech Picks to Buy on Recent Sector Weakness

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Politicians with a bully pulpit have been known to cause controversy, and Hillary Clinton’s vow to take on the drug industry has walloped the share prices on many pharmaceutical and biotechnology companies. We noted four top pharmaceutical stocks to buy on the current weakness. In a recent research report, Jefferies also highlighted three top biotech companies that are very tempting buys now.

Like all headline events, this too shall pass, and even if Mrs. Clinton does become president, the likelihood of her ever passing such a bill are very low. The Jefferies team says now is the perfect time to take advantage of the beat-down in the stocks and buy shares. They have three Buy-rated companies that look especially tempting now.


This is a top name in health care that many on Wall Street for years have thought to be an acquisition target. Alkermes PLC (NASDAQ: ALKS) is a fully integrated, global biopharmaceutical company developing innovative medicines for the treatment of central nervous system diseases. It has a diversified commercial product portfolio and a substantial clinical pipeline of product candidates for chronic diseases that include schizophrenia, depression, addiction and multiple sclerosis.

Jefferies and many others on Wall Street are very positive about the potential for its two late-stage pipeline drugs: 5461 for depression and 3831 for schizophrenia. The former product has already demonstrated that it has limited abuse potential, while the Phase 2 trial validated its mechanism of action for the drug. The Phase 3 clinical data being awaited on is considered to be a potential blockbuster for treatment-resistant depression.

The Jefferies price target for the stock is $76, and the Thomson/First Call consensus target is $73. The stock closed Thursday at $64.41.

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