Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the 10 stocks below are the highest rated in the biotech industry.

CAPS contains more than just the crowd's opinions. The votes of CAPS' best-performing members, known as All-Stars, count more in shaping each company's rating than do the picks of their poorer-performing peers. That way, investors can intelligently use members' collective wisdom to make better decisions.

The highest-rated biotech stock is...
Looking at the aggregate data, we see that our community rates Repligen (Nasdaq: RGEN) above the rest, and for good reason. As CAPS All-Star zzlangerhans wrote:

Repligen gets a green thumb for flirting with the one year low on lousy results of their phase III trial of secretin as an adjunct for pancreatic MRI. Disappointing I guess, but I don't know about a 20% haircut on a stock already down 15% from recent highs. The company will likely continue to maintain cash flows even through anemic 5M quarterly revenues and lazy spending on the phase IIb trial of (yawn) uridine for bipolar disorder. Is this the most boring baby biotech around? Possibly.

Here are the rest of the 10 highest-rated companies in the industry along with their CAPS rating:

 

Company

CAPS Rating (out of 5)

Market Cap (in millions)

1 Repligen ***** $104
2 Myrexis ***** $70
3 Astex Pharmaceuticals (Nasdaq: ASTX) ***** $181
4 Aeterna Zentaris (Nasdaq: AEZS) ***** $153
5 Emergent BioSolutions (NYSE: EBS) ***** $644
6 Gilead Sciences (Nasdaq: GILD) **** $30,586
7 Progenics Pharmaceuticals **** $208
8 Spectrum Pharmaceuticals (Nasdaq: SPPI) **** $673
9 BioMarin Pharmaceutical **** $3,791
10 PDL BioPharma (Nasdaq: PDLI) **** $853

Source: Motley Fool CAPS as of Nov. 7, 2011.

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