Investors have their pick of more than 500 publicly listed biotech companies, but many of those have no earnings, are bleeding cash and stand little chance of making real money for shareholders. However, which of these biotech stocks has bucked the trend and delivered an eye-popping gain of more than +9,000% in the last 10 years?

A.) Celgene (CELG)
B.) Biogen (BIIB)
C.) BioMarin (BMRN)
D.) Genzyme (GENZ)
E.) PDL Biopharma (PDLI)

Published: September 22, 2008

The correct answer is      (A.)  Celgene (CELG)

That's right, Celgene, has delivered mind-blowing four-digit returns in the last decade for its investors. CELG is a company primarily engaged in the discovery, development, and commercialization of therapies designed to treat cancer and immune-inflammatory-related diseases. And CELG is just one of the many opportunities in the biotech industry these days.

The good news is that this advance is hardly an isolated incident. Over the past 25 years, the quantity and quality of biotech companies have grown considerably. And during this time, stocks in the sector have enjoyed no less than five massive bull markets. For example, an entire index of biotech stocks vaulted to quadruple-digit gains in the early 1990s, delivering a return of over +1,300% -- meaning many of the index members zoomed up even more.

The bad news is that those run-ups were punctuated by periods of sharp losses. In fact, the Nasdaq Biotechnology Index peaked near 1,600 in early 2000, a time when the mapping of the human genome was making headlines. But today, it sits below 900, some -40% off its highs. But history has shown that for every step backward in this field, there has been a giant leap forward, and the upswings tend to last longer than the downswings. In fact, now this group is finally beginning to gain strength. The Nasdaq Biotechnology Index has posted an gain of +7.7% over the past three months, while the S&P sank -6%. And if previous bull runs are any guide, then this could be just the first step of a much bigger upward move.

With that in mind, StreetAuthority editor Nathan Slaughter recently put biotech companies under the microscope, looking for sound companies with large drug pipelines and positive cash flows that are far safer than tiny, speculative players. Investors looking for exposure to the biotech industry might want to check out the latest issue of Nathan's Half-Priced Stocks newsletter, which offers in-depth analysis of the industry and profiles of four companies that are in particularly good positions to deliver heart-stopping gains! To learn the names of these stocks, and to learn more about the Half-Priced Stocks newsletter, please visit this link.

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