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Innovation and growth should drive several biotech and drug stocks higher in 2020, despite political risk around drug pricing, according to Mizuho.
The bank initiated its coverage of the sector, finding five stocks worthy of a buy rating.
"Overall, we are bullish on the biopharma sector mainly because of the remarkable innovation we are seeing, including in areas such as neuroscience where innovation has historically been tougher to come by," Mizuho said in a note to clients.
The bank initiated two large cap stocks with buys, along with three smaller companies.