These are the best picks in the market-beating biotech sector, according to Credit Suisse

Published Tue, May 26 20202:40 PM EDTUpdated Tue, May 26 20203:38 PM EDT

(This story is for CNBC Pro subscribers only.) Biotechnology stocks have been a bright spot in the market during the coroanvirus downturn, and Credit Suisse is bullish on a handful of stocks in the booming sector. "Though investors are cautious in these unprecedented times, the renewed interest in Biotech highlights improved sentiment as investors look to Biotech for a potential treatment/ vaccine for COVID19, while macro overhangs (e.g. drug pricing legislation) have diminished," Credit Suisse research analyst Evan Seigerman told clients in a note on Tuesday. The iShares Nasdaq Biotechnology ETF is up more than 10% in 2020, while the S & P 500 is down more than 6% due to the coronavirus pandemic. Investors poured into biotech stocks with hopes one of the pharmaceutical giants could find a treatment for vaccine for the deadly virus. Credit Suisse made a list for clients of its favorite biotechnology stocks for the second half of 2020. All of the companies have a buy or neutral rating. Check out the list here. Amgen and Regeneron are two of Credit Suisse's top picks in the biotechnology space. Amgen said earlier this month it plans to study its psoriasis drug Otezla as a potential treatment for Covid-19. Otezla, which Amgen acquired last year from Celgene as part of Celgene's buyout by Bristol-Myers Squibb , is a drug that helps reduce inflammation. "Amgen continued its track record of commercial execution and management of investor expectations throughout the pandemic, with top and bottom-line beats driven by the biosimilar franchise," said Seigerman. Regeneron is also fighting the coronvairus. A rheumatoid arthritis drug made by Regeneron and Sanofi showed promise for treating the sickest coronavirus patients in a clinical trial in April. The drug, Kevzara, inhibits a pathway thought to contribute to the lung inflammation in patients with the most severe forms of Covid-19. "Continued commercial execution coupled with efforts to develop COVID-19 therapeutics drove strong YTD performance as the pandemic spread," added Seigerman. Credit Suisse said conservative guidance positions for Vertex as a beat and raise story for the remainder of the year. Plus, Vertex's portfolio is relatively insulated from coronavirus disruption due to lack of alternatives. MacroGenics , Mirati and Satsuma are also outperform-rated picks from Credit Suisse. Biogen , Aimmune , Incyte and Neurocrine are the firm's neutral rate top picks. Biogen 's experimental Alzheimer's drug, aducanumab, is the main focus of investors in the stock. "We continue to believe that performance or underperformance for Biogen will be driven almost entirely by aducanumab execution. Few concrete details regarding the aducanumab filing delay have been provided thus far; though we expect investor focus to return to the asset once the company has news to share. Still, the lack of clarity into the aducanumab regulatory progress makes it difficult to set expectations on timing beyond a 3Q filing," said Seigerman. — with reporting from CNBC's Michael Bloom.

A technician prepares a flow cell slide for loading onto a genetic sequencing machine at a Regeneron Pharmaceuticals laboratory in Tarrytown, N.Y.

Mike Segar | Reuters

(This story is for CNBC Pro subscribers only.)

Biotechnology stocks have been a bright spot in the market during the coroanvirus downturn, and Credit Suisse is bullish on a handful of stocks in the booming sector.

"Though investors are cautious in these unprecedented times, the renewed interest in Biotech highlights improved sentiment as investors look to Biotech for a potential treatment/ vaccine for COVID19, while macro overhangs (e.g. drug pricing legislation) have diminished," Credit Suisse research analyst Evan Seigerman told clients in a note on Tuesday.

The iShares Nasdaq Biotechnology ETF is up more than 10% in 2020, while the S&P 500 is down more than 6% due to the coronavirus pandemic. Investors poured into biotech stocks with hopes one of the pharmaceutical giants could find a treatment for vaccine for the deadly virus.

Credit Suisse made a list for clients of its favorite biotechnology stocks for the second half of 2020. All of the companies have a buy or neutral rating.

Check out the list here.