Lately, top analysts that correctly recommend pharmaceutical companies are making great returns.
It was Dr. Liana Moussatos’ spot on recommendations for pharmaceutical companies such as Relypsa Inc (RLYP), Receptos (RCPT), and Omeros Corp (OMER) that helped land her in the number 3 spot of 2365 analysts!
With a 81% success rate of recommended stocks and a +19.8% average return over the S&P 500, Liana has a special knack for choosing the right pharmaceutical stocks to buy. But, it shouldn’t come as a surprise since (Dr.) Liana Moussatos has a strong science and pharmaceutical background. She has a Ph.D. in plant pathology from University of California, Davis, she then went to Yale Medical School to do a post-doc in cellular molecular, she was a transfer fellow at the National Cancer Institute (which is part of the National Institutes of Health in Bethesda, Md), she worked in licensing at Sloan-Kettering in the Office of Industrial Affairs, and then she went to Bristol-Myers to do licensing for discovery-stage research before moving to Wall Street.
This experience has brought her returns well into the +50% mark!
Recently, Liana recommend to BUY Relypsa Inc, explaining, “”Relypsa is an emerging pharmaceutical company developing non-absorbedpolymer drug candidates to treat renal, cardiovascular and metabolic diseases. Patiromer has shown a potentially best-in-class profile for the treatment of hyperkalemia, and we believe can achieve peak annual sales of about $1.4 billion in the U.S.” This recommendation has already brought in +54.7% over the S&P 500.
Even more impressive, Liana recommended to BUY Receptos because “as we presume RPC1063 is likely to be the first approved oral treatment for IBD, we are increasing our pricing to be at a premium to Vedolizumab for IBD and in-line with Gilenya for RMS. We anticipate premium pricing for RPC1063— especially since it may become the first oral treatment for IBD.” This recommendation has brought in +69.9%, and counting!
Liana had a +53% return from her BUY rating of Omeros Corp because she anticipated a “90 percent probability of the FDA accepting the filing for review by late September of this year, with 10-15 percent potential upside in this instance,” she also estimated an “80 percent probability of the NDA being approved by the FDA in mid-2014 with potential upside of 20-40 percent if the approval is made.” This correct recommendation kept bringing in high earning when she reiterated her BUY rating just a month later, bringing her an additional +31.3%
So, what is Liana’s secret to her recommendations? According to an interview she has in The Wall Street Transcript, the first thing Liana looks at “is clinical or preclinical data on drugs they are developing. It has to be better than whatever else is out there. Or if it’s the first thing that’s coming out, it has to have some kind of impact on the patient, and it has to be reasonably safe because the FDA’s bar is much higher now because some drugs have had problems in recent years. If a company continues to take a drug to clinical trials and then tries to get it approved, and it has some safety issues – especially relative to other drugs that are out there and especially if there are other drugs to treat this – it probably won’t get approved. For me, safety is a really big issue, and I like to see drugs that have a disease-modifying effect, not just treat the symptoms. Ideally you have a drug that corrects the disease, but that’s rare.”
To continue following Liana to see if her analysis on choosing winning stocks is correct, as well as to see what other analysts are recommending, download TipRanks today!
