Please ensure Javascript is enabled for purposes of website accessibility

FDA Approval and a Generic-Drug Maker Arms Race Propel Winners

By Dave Williamson – Feb 27, 2014 at 9:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Anika and Mylan were today's big biotech stock winners. Here's why these two drugmakers delivered for investors today.

Anika Therapeutics (ANIK 7.06%) is the big winner in biotech this week, with shares having increased by a third of their value after receiving FDA approval for Monovisc, an osteoarthritis treatment injected directly into the knee. Johnson & Johnson (JNJ 1.08%) will be marketing the drug, with Anika receiving an upfront payment of $5 million and double royalties. While Motley Fool health-care analyst David Williamson notes that at first blush, it may look as though investor enthusiasm around this stock has become a bit overzealous, he thinks the company's growth definitely makes it one for the watchlist.

Meanwhile, investor excitement is also ramping up around Mylan (MYL), which stated in its press release on the subject of future M&A activity that "we currently expect to be in a position to execute on another substantial transaction this year." David notes that it isn't just Mylan's aggressive growth posture, as the company also beat estimates for its Q4 results and, more importantly, impressed with its 2014 guidance. All that, plus a generic version of the MS drug Copaxone coming down the pipeline, definitely makes this a stock David will be watching closely as well.

David Williamson owns shares of Johnson & Johnson. The Motley Fool recommends and owns shares of Johnson & Johnson. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Mylan Stock Quote
Anika Therapeutics Stock Quote
Anika Therapeutics
$31.54 (7.06%) $2.08
Johnson & Johnson Stock Quote
Johnson & Johnson
$178.00 (1.08%) $1.91
Allergan Stock Quote

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.