Blue Chip Biotech Bets

04/28/2006 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

With the top performance over the past 20 years, it's no surprise that the workshops by Louis Navellier are among the most popular at The Money Shows. To sample his approach, we look at a pair of new buys in his Blue Chip Growth Letter.

"Gilead Sciences (GILD NASDAQ) has biotech balms for infectious diseases, including the flu, HIV, and infections related to AIDS. The company sells its drugs through marketing alliances with major pharmaceutical companies like Pfizer and GlaxoSmithKline. This company is best known these days for its invention of Tamiflu, the drug used to combat the bird flu.

"Gilead gets royalties on the sale of Tamiflu and orders for the drug are on the rise. Due to the spread of the bird flu in Europe as well as increasing paranoia, Gilead Science's Tamiflu royalties will likely steadily rise. The US already ordered 14 million bird flu treatments, even though the bird flu has not yet appeared in the US.

"But Gilead has more than just Tamiflu in its powerful arsenal of drugs. Gilead Sciences has multiple drugs that are currently in demand. Its best-seller Viread drug is an HIV therapy used with other antiretrovirals medications and is approved in both the US and Europe. The FDA recently approved Gilead's once-daily version of its antiretroviral drug Viread as well as Truvada in a single daily tablet.

"Its newest anti-HIV drug, Truvada, is a combination of Viread and Emtriva. Some of its other products on the market include AmBisome, used to treat systemic fungal infections, such as those that accompany AIDS; Vistide, to treat eye infections; and hepatitis B antiviral Hepsera. I'm adding Gilead to my Conservative category. It's a great buy under $68.

"Also on our list of top buys recommendations is Celgene Corp. (CELG NASDAQ), which develops and manufactures therapies for cancer and immunological diseases including the cancer drug, Revlimid, which is used to treat multiple myeloma and continues meeting FDA approvals. The company has led the industry for more than 25 years. Its flagship drug, Thalomid, treats a type of leprosy and can help older patients recover from chemotherapy.

"The company is currently in clinical trials to determine which drugs are useful in treating certain blood cancers and inflammatory diseases. One of its newest drugs, Revlimid, is a potential blockbuster drug. The drug is currently approved to treat myelodysplastic syndrome, a type of blood cancer. It could be approved to treat multiple myeloma as early as June.

"Meanwhile, the stock recently hit a new 52-week high after Celgene said that the FDA will give a priority review to Revlimid to treat cancer of the plasma cells found in bone marrow. The company's subsidiary, Celgene Cellular Therapeutics, researches stem cell therapies and provides placental stem cell banking that is now very common. The stock recently split 2-for-1, settling down after its positive FDA news and is now a great moderate buy at prices up to $47."

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