Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.
Sonus Pharmaceuticals, Inc. (NASDAQ: SNUS) is the top speculative pick for 2007 from John McCamant. The editor of The Medical Technology Stock Letter says, "Sonus is one of the more exciting companies in the biotech investment arena.
"The firm is intently focused on the development of superior versions of existing cancer drug treatments that not only offer potentially improved efficacy, but also significantly more attractive safety profiles. Their lead product candidate, TOCOSOL Paclitaxel, is a reformulated version of paclitaxel, which belongs to the taxane class of chemotherapeutics -- which are among the most successful and frequently used.
"However, existing treatments have unattractive safety profiles; Sonus's treatment may be a significant improvement, and we will not have to wait much longer to find out. SNUS just recently completed enrollment in their over 800-patient Phase III trial for metastatic breast cancer treatment. We can expect results in the second half of next year, and if positive, the company will file for approval by the end of 2007.
"Results from four Phase II trials, including one in metastatic breast cancer, were quite impressive. If the results in the ongoing Phase III study come anywhere close to these earlier data, we have little doubt that this promising new cancer treatment candidate will go on to receive FDA approval.
"We believe the stock is undervalued, with a current market cap of barely over $200 million. Not only do they have a cancer therapy with large potential in Phase III, but this program has also received excellent validation through a lucrative worldwide partnership with Schering AG. SNUS is a buy under $7 with a target of $13."
To see John's top conservative pick for 2007, click here.
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