Wake Up Newsletter: Q1 2013

Jim has just returned from San Francisco, where he was attending the JP Morgan Healthcare conference with two colleagues. This conference is in its fourth decade and is the must-have ticket for players in the bio pharma industry. Companies vie for the opportunity to present to about 10,000 delegates, and those that are not admitted throng hotels in the area, with a further 10,000 people doing deals and presenting on the fringe.

This was Jim's third outing to the event, and the tone was very upbeat. The FDA (America's drug regulator) appears to be more proactive in approving compounds, and over 30 novel drugs (as opposed to reworking of established molecules) were launched last year. Among these was Xtandi, the Medivation prostate drug we have written of before, and Kryopolis (for multiple myeloma) from Onyx, another company we have supported.

Both are doing very well, but the stock prices of their manufacturers have probably caught up with events.

The table below sets out the shares we prefer as buys after the conference – (with the usual caveat emptor label).