I highlighted Isis Pharmaceuticals a few weeks ago believing that a sell-off causing a price decline from $19 to $16/share was a prime opportunity to buy a potential high-growth business. It seems, however, that my proclamation may not have been entirely correct. And, post last week’s trading, I’ve liquidated my position in ISIS. Do I still think ISIS could present a tremendous opportunity to invest in next-generation biotechnology? I do. But, with markets seemingly reaching a top and real cash flow in ISIS years away, it’s probably better to be safe than sorry. Moreover, lacking the ability to perform accurate fundamental analysis due to ISIS’s place on its growth curve, an investor is left only with technical analysis to guide the investment process and, as I will show, ISIS’s charts no longer paint the profoundly bullish picture they once did. Before I begin, I recommend those unfamiliar

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I recently highlighted a small biotech firm, ISIS Pharmaceuticals, as a potential “value” growth play. ISIS took a tumble after earnings despite being just a penny off of estimates. Despite slightly lower than expected earnings, the Company showed a strong cash position, moderate cash burn, and a likelihood that it would be able to at least make it through full trials for its most promising drug. I know that for some even this doesn’t count as value. Afterall, the Company is not free cash positive and any value ascribed to the Company is derived from future expectations of its drug pipeline of which there are none currently in distribution.

For those looking for more proven business models but still looking to take advantage of the coming shift towards genetic pharmaceuticals as opposed to small molecule pharmaceuticals, a look at ISIS’s partners may clue you into some

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Since bottoming near the end of 2008, ISIS Pharmaceuticals has been one of the hottest stocks in the first half of 2009. In fact, in just a few short months, the stock has exhibited all the tell tale signs of a powerful, interim trend reversal. More importantly, a look at ISIS’s 3-year weekly chart shows that despite a dramatic correction in 2008, the stock maintained its long term, continuum with a swift reversal off of its 200-week moving average (shown below).

Profound bullish action in the first half of 2009 culminated in the stock’s recent acceleration from $15/share to nearly $19/share in advance of earnings last week. Unfortunately, exuberance seems

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For Immediate Release

Chicago, IL - June 24, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tiffany (TIF), Big Lots (BIG), Family Dollar (FDO), Isis Pharmaceuticals (ISIS) and OncoGenex (OGXI).

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Here are highlights from Tuesday's Analyst Blog:

Long-Term Job Stagnation

The two major forces behind the secular slowdown in job creation have been automation and globalization (off-shoring). It would not be particularly wise to reverse job losses coming from automation, since technology is the source of productivity growth and ultimately higher standards of living.

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The pharmaceutical industry is entering a period of substantial change in 2009. Most of the names in the industry are facing significant patent challenges in the years to come. U.S.-based firms are facing foreign exchange headwinds, as well. Revenue growth is non-existent, and earnings growth is being driven primarily by mergers, cost-cutting and share buybacks. Knowing that investors rarely pay-up for this type of manufactured earnings growth, we struggle to see a broad-based out-performance for the large-cap pharmaceutical sector in 2009.Valuations, however, are attractive, with several of the largest players trading at PEs below 10x, including: Pfizer (PFE, 7.5x), Eli Lilly (LLY, 8.1x), Merck (MRK, 8.3x), Sanofi (SNY, 7.5x), AstraZeneca (AZN, 7.6x) and GlaxoSmithKline (gsk, 9.3x) based on our fiscal 2009 estimates. Attractive valuations, along with big dividend yields, should protect investors against significant downside risk even if the economy continues ...

For Immediate Release

Chicago, IL - May 11, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Osiris Therapeutics, Inc. (OSIR), Genzyme Corp. (GENZ), Barclays PLC (BCS), Intersil Corporation (ISIL) and Isis Pharmaceuticals (ISIS).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Friday's Analyst Blog:

Optimistic on Osiris

Osiris Therapeutics, Inc. (OSIR) reported financial results for the first quarter 2009 on May 7, 2009. Total revenues in the quarter were $12.7 million, up from $0.4 million for the same period for 2008, and slightly above our forecasts of

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We are keeping our Buy rating and $22 price target on Isis Pharmaceuticals (ISIS). We are big fans of antisense technology and believe that the number of potential therapeutic applications is enormous. Antisense drugs may have significant potential to treat a number of diseases where small molecule and biologic compounds have failed.Although still early-stage, antisense technology as a platform for developing drugs reminds us greatly of the promise of biologic drugs over a decade ago. Potential mechanisms such as siRNA, RNAi, alternate splicing and micro RNA have the potential to change how we treat disease in the years to come.Isis is pioneering the effort into antisense research. The company has already commercialized the first antisense drug in 1998 with Vitravene. Isis has several proprietary compounds in clinical development as well as partnered programs with large pharmaceutical companies such as Glaxo (GSK), Bristol-Myers (...

For Immediate Release

Chicago, IL - April 7, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Isis Pharmaceuticals (ISIS), Cosan Ltd. (CZZ), Petrobras (PBR), Bristol-Myers Squibb Co. (BMY) and HSBC Holdings plc (HBC).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Monday's Analyst Blog:

ISIS: Big Blockbuster Potential

We are keeping our Buy rating and $22 price target on Isis Pharmaceuticals (ISIS). We encourage investors to pick up the shares at this level. We think commercialization of mipomersen for HoFH under an accelerated approval should come in

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Highlights include Isis Pharmaceutical, Inc. (ISIS) and Genzyme Corp. (GENZ).We are keeping our Buy rating and $22 price target on Isis Pharmaceuticals (ISIS). We encourage investors to pick up the shares at this level. We think commercialization of mipomersen for HoFH under an accelerated approval should come in early 2011. Mipomersen represents one of the largest potential blockbuster drugs to come to market in the next few years.Additionally, the path to market outside the U.S. may be easier than the Street anticipates. We see today's price as a significant opportunity to pick up the premier antisense development company on the market for a discounted price.We are big fans of antisense technology and believe that the number of potential therapeutic applications is enormous. Antisense drugs may have significant potential to treat a number of diseases where small molecule and biologic compounds ...

For Immediate Release

Chicago, IL - April 3, 2009 - Zacks.com releases the latest Industry Outlook. Today's interview is with senior analyst Jason Napodano, who talks about the Pharmaceutical Industry, including Bristol-Myers

(BMY), Johnson & Johnson (JNJ) and Abbott Laboratories (ABT).

Chicago, IL - April 3, 2009 - Zacks.com releases the latest Industry Outlook. Today's interview is with senior analyst Jason Napodano, who talks about the Pharmaceutical Industry, including Bristol-Myers (BMY), Johnson & Johnson (JNJ) and Abbott Laboratories (ABT).

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

We have three Buy-rated names within the large-cap space: Bristol-Myers (BMY), Johnson & Johnson

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