Pro's Best Buys in Health Care
Online Producer
The best-performing sector year to date, health care still holds potential, Orbimed Advisors Managing Partner Sam Isaly said Tuesday on CNBC.
"Growth is getting a whole lot better for at least two reasons. As you look at the big drug companies, the patent cliff is now a little sand dune," he said. "And secondly, research output has accelerated very substantially. There's lots of news in pharma, biotech and so on, and there's also lot of news elsewhere in health, so I'm not a bit surprised that it's taken up like this."
On "Fast Money," the manager of the Eaton Vance Worldwide Health Sciences Fund said that his top pick, Roche, was a leader in cancer drugs.
Ahead of the American Society of Clinical Oncology meeting in May, Roche had upside, he said, also adding, "Bristol-Myers is a star."
Aside from Roche, Isaly's top picks in the sector also included Pfizer, Sanofi, Gilead ("It's a great play on antivirals ") and Merck.
Isaly added that the Affordable Care Act would provide an extra boost for health care stocks.
"In 2014, there's going to be a huge increase of demand because Obamacare gets implemented," he said. "Now, Obamacare is a program to cover more people. It is not a program for cost control, so at least initially for the first couple of years prices'll be all right, and these companies will be all right.
"There'll be a boost in demand that's going to be dramatic starting next year."
Trader disclosure: On March 26, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Brian Kelly is long US BONDS; Brian Kelly is long GOLD; Brian Kelly is long SILVER; Brian Kelly is short S&P 500; Brian Kelly is short DAX; Brian Kelly is short COPPER; Brian Kelly is short EUROSTOXX; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long MRK; Pete Najarian is long AAPL; Pete Najarian is long YHOO; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long AMZN CALLS; Pete Najarian is long PFE; Pete Najarian is long MRK; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long AAPL ; Joe Terranova is long AXP; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long SWN.
