Sometime during the middle of the year, Genentech (DNA) shareholders are going to get $95 in cash for each share of Genentech stock they own. In total, nearly $47 billion in funds are expected to be returned to biotechnology investors.We've come up with an effective "basket approach" to re-deploy those funds back into the biotech sector -- in search of the next Genentech.Antisense Makes a Lot of SenseFor a little over $13, investors can pick up one share of Isis Pharmaceuticals (ISIS). Isis is the market leader in antisense technology.We've made it no secret in the past -- we are big fans of antisense. We view the drug discovery engine fueled by Isis' antisense technology very similar to the power of Genentech's recombinant DNA and monoclonal antibody technology breakthroughs of the 1980's. Antisense drugs are still in their infancy, ...

Highlighted stocks include Arena Pharmaceuticals (ARNA), CV Therapeutics (CVTX), Osiris Therapeutics (OSIR) and AMAG Pharmaceuticals (AMAG). Know Your Options When Investing in Biotechnology Stocks Investing in biotechnology stocks is certainly not for the timid or weak at heart. Stocks in the industry trade with perhaps the highest volatility in the market and move based on binary events. The ultimate of binary events for a biotech stock is the release of important phase III data or a decision by the FDA. Knowing that after you purchase a biotech stock you may either be very right or very wrong at some point thereafter, perhaps no sector lends itself to the usefulness of options better than biotech. We have 2 strategies that may be helpful to clients. The first is on stocks we rate Hold but have big binary events coming in the next

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