3 Promising Biotechs for 2014: Ariad, Bristol-Myers, Sanomedics
Investors looking to generate substantial gains over the coming years may want to take a look at the our small-cap biotechnology companies mentioned in this article. Although each company has its own set of risks, the potential that each company offers cannot be disputed. The four companies are Ariad Pharmaceuticals (NASDAQ:ARIA), Bristol-Myers Squibb Company (NYSE:BMY), and Sanomedics International Holdings (SIMH.PK).
One of the most actively traded biotechnology stocks over the past few months has been Ariad Pharmaceuticals. Ariad Pharmaceuticals is an integrated global oncology company focused on transforming the lives of cancer patients with breakthrough medicines. The company is working on developing new drugs for the treatment of chronic and acute leukemia, lung cancer, and other difficult-to-treat cancers.
Although Ariad Pharmaceuticals had a rough 2013 because of a series of FDA setbacks, the company is back on track. Over the past 3 months, shares of Ariad Pharmaceuticals have climbed by roughly 255 percent thanks to several positive developments and takeout chatter.
One of the biggest sparks for Ariad shares occurred in late November 2013 when the Committee for Human Medicinal Products of the European Medicines Agency gave a positive opinion on the continued availability of Iclusig in the European Union for use in patients in its authorized indications. Those indications included:
- The treatment of adult patients with chronic phase, accelerated phase or blast phase chronic myeloid leukemia (or, CML).
- The treatment of adult patients with Philadelphia-chromosome positive acute lymphoblastic leukemia.
An even bigger spark came in late December when the FDA approved revised U.S. prescribing information for Iclusig. Ariad was able to once again resume its marketing and commercial distribution of Iclusig in the U.S. Since that announcement, shares have continued to climb higher, which has led some to speculate that a takeout might be occurring. Given the value of the company compared to where it once was, it certainly is possible that a larger biotechnology firm may wish to acquire Ariad Pharmaceuticals at this bargain valuation.