3 Biotech Stocks That Belong in Your Portfolio

Despite biotech's tumultuous year, several larger names in the space still look like attractive buys

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3 Biotech Stocks That Belong in Your Portfolio

The recent market selloff has been brutal for investors in biotech stocks, as many have been spooked by record highs, disappointing news on patent protection and some clinical trials.

biotech laboratory scientist 630 ISP 300x227 3 Biotech Stocks That Belong in Your Portfolio
Source: ©iStock.com/AlexRaths

Nevertheless, the pullback in biotech stocks is an opportunity for growth-oriented investors to buy into this dynamic sector.

First the bad news: the U.S. Patent and Trademark has proposed new rules that bar companies from gaining patent protection on drugs derived from nature, such as pieces of genes or antibodies, according to Scientific American. Comments about the proposed rules are due by July 31.

So what’s the good news? The biotech industry not only is fueling development of blockbuster treatments for tough to manage diseases, but investors in companies with strong drug pipelines can deliver very large returns when they get the green light from regulators. Still, biotech stocks — even many large caps — can be volatile, so investors need to be comfortable taking on more risk in exchange for those high-potential returns.

That said, these larger-cap biotech stocks are a little more manageable from a risk perspective, and belong in your portfolio now:

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Article printed from InvestorPlace Media, http://investorplace.com/2014/07/3-biotech-stocks-to-buy-celg-amgn-gild/.

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