Biotech looks set to close out 2015 as its worst performing year since 2008. That may sound bad, but despite this, the iShares Biotechnology Index ETF (NASDAQ: IBB) is still up over 11% year to date. Not bad for a relatively bad year.
Can we expect a better 2016 for this exciting sector? It has gotten some negative focus lately due to the buy-and-raise antics surrounding a certain controversial biotech CEO named Martin Shkreli who, to add insult to injury, just happened to get himself arrested on charges of securities fraud. Overall though, there are too many exciting late-stage trials going on for biotechs large and small that could materially change the sector for the better.
Here are four biotech picks for 2016 that present a balance of both risk and stability for the new year.
Roche
Roche, which is traded over the counter, is s staple of any diversified biotech portfolio. At $229 billion in market cap, its stability and dominance are as rock solid as you can get in the sector. What makes Roche an especially interesting choice for 2016 though is the new technology it got access to via a partnership with private firm SQZ Biotech for $500 million.
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