UBS Research Equity Analyst Picks Top Stocks In Large Cap Biotech Sector

• On 2:59 pm EST, Tuesday November 10, 2009

67 WALL STREET, New York - November 10, 2009 - The Wall Street Transcript has recently published its Biotechnology Report offering a timely review of the sector to serious investors and industry executives. This 70 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Heightened M&A Activity - Trend Toward Orphan Disease Drug Development - Generic Drug Competition - Current Length Of FDA Approval Process - Ownership Ego Preventing Shareholder Returns - IPO And Secondary Offering Window Opening - Big Pharma R&D Pipeline - Decreased Clinical Development Risk - Impact Of Health Care Reform - Convergence Of Large-Cap Biotech And Pharmaceutical Companies - Easier Credit For Small Cap Biotech Companies - Developments In Cancer Chemotherapeutics - Gene Delivery Technology

Companies include: ADVENTRX (ANX); Abbott Labs (ABT); Advaxis (ADVX); Amedisys (AMED); Amgen (AMGN); Amylin Pharmaceuticals (AMLN); Antares Pharma (AIS); BioDelivery Sciences (BDSI); Biogen Idec (BIIB); Biomarin (BMRN); Boston Scientific (BSX); Bristol Myers (BMY); CVS Caremark (CVS); Celgene (CELG); Cerner (CRN); Cerus (CERS); Coke (KO); CombiMatrix (CBMX); Coventry Health Care (CVH); DARA (DARA); Eisai (ESALY); Eli Lilly (LLY); GenVec (GNVC); Gilead (GILD); GlaxoSmithKline (GSK); Health Management Associates (HMA); Human Genome Sciences (HGSI); Inspire Pharmaceuticals (ISPH); Intellect Neurosciences (ILNS.OB); InterMune (ITMN); International Stem Cell (ISCO.OB); Javelin Pharmaceuticals (JAV); Johnson & Johnson (JNJ); Keryx Biopharmaceuticals (KERX); Kraft (KFT); MAP Pharmaceuticals (MAPP); Medco (MHS); Merck (MRK); Merit Medical (MMSI); Novartis (NVS); Novelos (NVLT.OB); Novo Nordisk (NVO); Nutrisystem (NTRI); OSI Pharmaceutical (OSIP); Orexigen (OREX); Pepsi (PEP); Pfizer (PFE); Rite Aid (RAD); Schering-Plough (SGP); Takeda (TKPHF); Teva Pharmaceuticals (TEVA); Viropro (VPRO.PK); Walgreens (WAG); Wyeth (WYE); XOMA (XOMA); ZIOPHARM (ZIOP).

In the following brief excerpt from just one of the in depth interviews in the 70 page report, an award winning Biotech equity research analyst discusses the outlook for the sector and for investors.

MAGED SHENOUDA is an Executive Director in the health care group of UBS Investment Research, specializing in coverage of large-cap biotechnology companies. An Analyst since 1999, he joined UBS in 2004 from J.P. Morgan, where he had served as a Biotechnology Analyst since 2000. Mr. Shenouda earlier worked as biotech and European Pharmaceuticals Analyst at Bear, Stearns & Co., and as an Associate Pharmaceuticals Analyst at Solomon Smith Barney. Prior to that, he was a Management Consultant with Price Waterhouse, focusing on the pharmaceutical industry, and he served as a Pharmaceutical Sales Representative for Abbott Laboratories. Mr. Shenouda holds an MBA in marketing from Rutgers University and a B.S. in pharmacy from St. John's University's College of Pharmacy. He is a registered pharmacist in New Jersey and California.

TWST: Who are your top picks in the sector and why?

Mr. Shenouda: So right now, we like Gilead. They have a dominant HIV franchise. Their base business is doing well. We also expect upside from clinical data releases next year with a product called GS 9350, their non-protease booster, as well as elvitegravir, their integrase inhibitor. Combine that with potential changes for HIV treatment guidelines, where patients would be treated earlier at CD4 counts of 500 and less versus 350 currently. This would bring more patients into treatment. So that's more of a shorter-term commercial upside opportunity.

TWST: Who else?

Mr. Shenouda: Then we like Celgene (CELG). We think it's the best growth story in biotech. Its geographic expansion outside of the U.S. is going to maintain its top-line growth at the top of its peer group. We also expect positive data releases. Specifically, we anticipate positive detailed data from the MM-015 trial at the ASH meeting in December. We also like Human Genome Sciences (HGSI). We're excited about the prospects of BENLYSTA, that's its lead development-stage product for the treatment of lupus or SLE. They had a positive readout with the first Benlysta Phase III trial. We think that they are likely to have a positive readout with the second Phase III trial, called BLISS-76, reading out in November. We also believe this is a strong acquisition target.

TWST: When you're looking at stocks, what makes a company stand out as a good pick?

Mr. Shenouda: Definitely the fundamentals. We look at the fundamentals initially. Is this good? Are the prospects solid? Are the data strong? First you start with the data, then you convert that over to the commercial opportunity and then it is valuation. Management is also very important because we've seen cases where management has turned precarious situations into solid stories - they've been alchemists.

TWST: Tell us about your background.

Mr. Shenouda: I'm a pharmacist by training, and I went to business school and then I went to work for Abbott Laboratories as a Sales Representative. Then after that I went to work in consulting for a few years for Price Waterhouse, it's now PricewaterhouseCoopers. Then I went to work as a Research Associate at Solomon Smith Barney in their pharmaceuticals group and specialty pharma. Then I did a very brief stint in European pharma, and I've been working in biotech for the last 10 years.

Note: Opinions and recommendations are as of 10/06/09.

Maged Shenouda

Executive Director, Health Care Group

UBS Investment Research

1285 Avenue of the Americas

New York, NY 10019

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 70 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

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