Five Cancer Drug Companies Rated Buy By Wall Street Analysts ...

As investors pour over a mind-numbing amount of data released prior to the American Society of Clinical Oncology meeting next month, analysts are providing their thoughts on the companies with some upside to their stocks.

As a number of stocks rise and fall today following Wednesday night?s ASCO data release, here are five that some analysts say are worth a look. (See Minyanville: Vical, Exelixis Surge as Cancer Meeting Nears.) All five companies have buy recommendations from analysts quoted below and four of the five have had substantial stock price run-ups this year. The companies are among more than a hundred publicly traded biotech firms testing cancer treatments.

Incyte (INCY) showed positive results for its drug ruxolitinib for myelofibrosis in late-stage human studies and will present data at ASCO. The drug is among a class of treatments known as JAK inhibitors and targets a true unmet need.

There is currently no effective treatment for the disease, a type of leukemia. The drug could be approved by the end of the year and ?has the potential to drive a breakthrough to profitability by 2012,? Robert W. Baird analyst Thomas Russo says.

Incyte?s shares are up 17% this year, trading at $19.40 midday Thursday. Russo recommends the stock with a $24 price target.

ImmunoGen (IMGN) owns a proprietary technology that helps target cancer cells while minimizing the damage to healthy tissue. ImmunoGen is testing its own drugs, while also licensing its technology to bigger companies like Roche and Sanofi (SNY).

Roche is testing a breast cancer drug, T-DM1, using ImmunoGen?s technlogy. Sanofi recently completed early-stage testing of a drug licensed from ImmunoGen, SAR3419, for non-Hodgkin?s lymphoma.

RBC Capital Markets analyst Jason Kantor recommends buying ImmunoGen and has a $16 target. The company?s stock has risen almost 37% this year, trading at $12.65 midday Thursday.

SuperGen (SUPG) is collaborating with Japanese drug maker Eisai and Johnson & Johnson (JNJ) to develop the drug Dacogen for acute myeloid leukemia. The companies report positive results for older patients with the disease in an ASCO abstract released last night. Additional details are expected to be released at the ASCO meeting.

Dacogen ?showed an overall survival advantage and higher response rates without major differences in safety, which in our view is an incremental positive that could extend the royalty stream for SuperGen in the future,? Rodman & Renshaw analyst Elemer Piros says.

SuperGen hasn?t had the big run-up price like some other cancer drug companies. Its shares have risen 3% this year, trading at $2.70 in midday trading. Piros recommends buying the stock and has a $5 price target on the shares.

Endocyte?s (ECYT) positive mid-stage study data for ovarian cancer drug EC145 will create buzz at the ASCO meeting for the company?s current Phase III trial, Robert W. Baird analyst Christopher Raymond predicts.

Endocyte is focused on a tough-to-treat condition known as platinum resistant ovarian cancer. Raymond predicts the drug will be approved in the US by the end of next year. He also believes Endocyte will attract a partner company to help market the drug outside the US. Endocyte shares have jumped by more than 50% this year and traded at $11.88 midday Thursday. Raymond recommends buying the stock and has a $15 price target.

Ariad Pharmaceuticals (ARIA) is partnered with Merck (MRK) to develop lead drug ridaforolimus for different types of cancer, including sarcoma. In a late-stage study, the drug showed an improvement in median survival rate of nine weeks.

Leerink Swann analyst Howard Liang recommends buying Ariad?s stock because he believes ridaforolimus has a good chance of winning US approval for sarcoma, a cancer that starts in muscle, fat or bones. Ariad?s stock has risen more than 70% this year, trading at $8.86 midday Thursday. Liang has a price target of $11 on the stock.

Tell us in the comments section which cancer drug stocks you think have upside potential.

Trade ETFs? Take a 14-Day Free Trial to Mike Paulenoff's MPTrader newsletter. Receive specific trades and strategies across all sectors. Learn more.

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Source: http://www.minyanville.com/businessmarkets/articles/incyte-immunogen-supergen-endocyte-ariad-pharmaceuticals/5/19/2011/id/34662

linkedin ipo okc thunder super 8 movie the matrix kevin durant mavericks nicole scherzinger