Pharma stocks, particularly Biotech ones are very hot currently and the new inventions as well as patents on drugs are keeping a few ahead of the rest. Gilead Sciences, Inc. (NASDAQ:GILD) revenues have increased above expectations due to the positive movements around the Hepatitis C drug. There are other players in this space competing for a drug on Hepatitis C.
CNBC’s Meg Tirrell explained the stocks to look for in the second half of the year in the biotech and pharma space. According to her, the competition in the Hepatitis C space would help few stocks such as Gilead Sciences, Inc. (NASDAQ:GILD). It is supposed to receive the approval by October. Tirrell also said that data on drugs would be presented by other players in the segment such as Bristol-Myers Squibb Co (NYSE:BMY) and AbbVie Inc (NYSE:ABBV) to the FDA.
In the Biotech sector, we can expect clinical data readouts from companies such as Biogen Idec Inc (NASDAQ:BIIB) and these could have big implications to the stocks of these companies. M&A can never be taken out of the picture considering the events that took place so far this year. AbbVie Inc (NYSE:ABBV) has increased its bid to acquire Shire PLC (ADR) (NASDAQ:SHPG) to $51.5 billion reportedly. We can also see rebids from Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Pfizer Inc. (NYSE:PFE).
“Never discount M&A, it’s already been a record year and analysts expect that only to continue.” Tirrell stated about the scope of M&A.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is currently pursuing a hostile bid for the Botox manufacturer Allergan, Inc. (NYSE:AGN) and we can also see Pfizer Inc. (NYSE:PFE) increasing its bid to acquire AstraZeneca plc (ADR) (NYSE:AZN). This makes the second half very exiciting for someone who is looking for good biotech stocks.
Key investors in Gilead Sciences, Inc. (NASDAQ:GILD) are Fisher Asset Management with over 30.2 million shares in the company and Diamond Hill Capital with approximately 8.8 million shares and the investors will be looking at the improvements in the Hepatitis C space closely.