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Look for more upside in these biotech names: Pro

Vertex Pharmaceuticals' soaring shares rubbed off on the Nasdaq Biotechnology Index Tuesday, after studies showed the company's new combination of drugs to treat cystic fibrosis met the goals of two late-stage clinical trials.

It also had investors looking for the next breakout biotech stock.

Read MoreStock soars on stunning results on cystic fibrosis

UBS's Matt Roden, who called the Vertex news a great example of organic value creation in the biotech industry, likes Puma Biotechnology. The company has several upcoming events—including a breast cancer drug in the pipeline.

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PBYI has a "potential favorable risk-reward based on the upside potential versus where it's trading," he told CNBC's "Power Lunch."

Roden also thinks two large cap names—Gilead Sciences and Celgene—have the potential to move higher on drug development in the pipeline.

Read MoreThe next UK pharma takeover target may be…

Although Vertex's stock spiked on Tuesday, Roden still believes there's still room to run.

"There are still levers to the upside organically," he said. "On top of that …. given that this is a very long-duration asset with very high margins, you can imagine that some strategic acquirers might be interested in coming along and taking a look."

Read MoreCNBC Explains: Vertex's cystic fibrosis drug combo

—By CNBC's Michelle Fox. CNBC's Jennet Chin contributed to this report.

Disclosure: UBS owns Vertex Pharmaceuticals for clients. Puma Biotechnology is an investment banking client of UBS and Celgene is or within the past 12 months been an non-investment banking client.