The toy fair isn’t the only meeting of the minds taking place in New York this week – the Biotechnology Industry Organization is having its annual convention as well. Two biotech analysts came on “Street Signs” to discuss where investors can make money in the sector.
Eric Schmidt of Cowen & Co. says Cephalon is the clearest growth story in the industry. The biggest driver for Cephalon is its drug Provigil, which is used to combat sleep apnea. Schmidt sees sales of Provigil growing a least 30 to 40% over the next 5 years – and Cephalon shares could see triple-digits as well, he says. Cephalon has long been an undervalued stock, according to Schmidt, but a turnaround in 2007 will likely have investors changing their tune.