Allergan, BioMarin Hold Promise for 2018

On Wednesday we highlighted some small-cap names in biotech and biopharma that should have solid performances in 2018. I believe the year should a good one for the industry, provided tax reform passes. After being dormant for over a year, I also expect merger-and-acquisition (M&A) activity across the industry to come roaring back in the New Year. Large drug and biotech giants have a dearth of internal growth opportunities but are flush with cash and have hundreds of billions of dollars stashed in their overseas operations. This combination should mean a lot of small- and mid-cap names will not be stand-alone entities by the end of 2018.

Today, we will throw out a couple of larger-cap names that I think will perform quite well over the next 12 months. Allergan plc (AGN) has been battered the last few months largely due to a self-inflicted wounds incurred while trying to protect and extend the patents of a key drug. Those travails seem more than fully priced into the shares after a 30% decline since summer. Once tax-loss selling ends, I think the stock of Allergan could get off to a good start in 2018....264 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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