ARTICLE | Finance

Great(er) expectations

January 4, 2010 8:00 AM UTC

Bankers and buysiders are adamant that despite a difficult fourth quarter - and in part because of it - they have positive expectations for 2010. Their views are based on factors including the wrapping up healthcare reform, a full calendar of milestones, beaten down P/Es for big cap biotechs, and the potential ascendance of a new class of bellwethers.

Indeed, a new set of biotechs appear poised to move into the big cap space, while existing large caps could be reinvigorated this year. If the up-and-comers do well - particularly Human Genome Sciences Inc. and Vertex Pharmaceuticals Inc. - investors are likely to keep fishing for other potential wins from a full calendar of late-stage clinical and regulatory milestones...