Biogen Idec (BIIB - option chain) stock is trading lower today on news that an FDA advisory committee recommended approval of Novartis' (NVS) FTY720 treatment for patients with relapsing multiple sclerosis. NVS said the drug worked better in trials than BIIB's drug Avonex. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BIIB.

This morning, BIIB opened at $47.39. So far today the stock has hit a high of $47.62 and a low of $46.52. As of 12:30, BIIB is trading at $46.64, down $1.50 (-3.1%). The chart for BIIB looks neutral and S&P gives BIIB a neutral 3 STARS (out of 5) hold ranking.

After the closing bell Tuesday, Abbott Laboratories (ABT) announced that it will acquire Facet Biotech (FACT) for $27 per share. The transaction carries a total price tag of $722 million. Including $272 million of FACT's cash and securities, the net cost turns out to be roughly $450 million.

Back in December, FACT turned down Biogen Idec's (BIIB) unsolicited takeover offer of $17.50 per share. The deal is expected to close in the second quarter, as both boards of directors have approved the deal.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Our top stock pick for 2010 is ImmunoGen (IMGN)," says biotech specialist John McCamant.

In his The Medical Technology Stock Letter, he explains, "The company's potent cancer-cell killing antibodies were developed for targeted delivery to tumor cells."

Biogen Idec (BIIB) has made a bit of news the past two days, starting with Thursday's news that William Young is the company's new chairman of the board. BIIB's Bruce Ross will complete his term as director and will step down from the board at BIIB's 2010 shareholder meeting. William Young will take over effective January 1, 2010. Young is a veteran of the biotech industry, as he served with Monogram Biosciences, Genentech (where he was CEO), and Eli Lilly.

Ross noted, "I am pleased the Board has selected Bill Young as Biogen Idec's new Chairman. He is an experienced biotechnology and pharmaceutical industry executive with an extensive understanding of Biogen Ides, given his 12 years of service as a director of the company."

CBOE Volatility Index S&P 500 Options-VIX closed at 21.71; 10-day moving average is 24.37.

Biogen Idec (NASDAQ: BIIB) closed at $49.79. BIIB is expected to report Q3 EPS on October 20 and give avonex outlook. BIIB November and January option implied volatility of 36 is near its 26-week average of 39 according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Elan Corp (NYSE: ELN - option chain) stock is falling today after Biogen (NASDAQ: BIIB) reported another serious brain infection in a patient being treated with Tysabri. Tysabri is a MS drug whose revenues are shared by BIIB and ELN. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on ELN.

This morning, ELN opened at $7.37. So far today the stock has hit a low of $6.87 and a high of $7.49. As of 11:15, ELN is trading at $6.88, down 48 cents (-6.5%). The chart for ELN looks neutral and S&P gives ELN a neutral 3 STARS (out of 5) hold ranking.

"Midyear is as good a time as any to pause and reflect," says Richard Moroney in Dow Theory Forecasts -- a newsletter with the distinction of having been published for more than 50 years.

Here, he reviews the state of the market and offers a look at trio of favorite stocks which he considers "fundamentally superior" companies: Biogen Idec (NASDAQ: BIIB), Comcast (NASDAQ: CMCSA), and Oceaneering International (NYSE: OII).

Alcoa Inc. (NYSE: AA) started off the new earnings season with disappointing results that helped to stifle the recent rally. Was that enough of a sign of what's to come? No, probably not. But the earnings reports start to fly in earnest this week, which should provide a more detailed picture of the state of things.

Analysts surveyed by Thomson Reuters anticipate that some of the biggest names will prove to be holding their own. Google Inc. (NASDAQ: GOOG) is expected to post a profit of $4.91 per share, marginally higher than a year ago, and Johnson & Johnson's (NYSE: JNJ) expected $1.22 per share profit is slightly lower year over year. Even Mattel Inc.'s (NYSE: MAT) estimated loss of $0.13 per share is the same as in the year-ago period.

Elan (NYSE: ELN) said it is initiating a strategic review which could result in a minority investment, a strategic alliance, a merger, or a sale. ELN closed at $8.03 Monday. ELN February call option implied volatility is at 103, puts are at 112, above its 26-week average of 100 according to Track Data, suggesting larger price movement..

Biogen Idec (NASDAQ: BIIB) closed at $48.45 Monday. BIIB and ELN have a 50-50 stake in the multiple sclerosis drug Tysabri. ELN said it is initiating a strategic review which could result in a minority investment, a strategic alliance, a merger or a sale. BIIB February option implied volatility of 56 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Crucell NV (NASDAQ: CRXL), a biopharmaceutical company, and Wyeth (NYSE: WYE) confirmed on January 7 the two firms are in discussion to combine. CRXL closed at $22.63 Monday. CRXL February option implied volatility of 58 is near its 26-week average of 61, according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Health care has long been considered a recession-resistant business. Given the current economic challenges, it's little surprise that in our survey of favorite stocks for the coming year, a number of leading advisors turned to this classic defensive sector.

In this year's Top Stock Picks from 75 advisors report, we found an intriguing group of medical-related stocks, from speculation in emerging biotech to well-established pharmaceutical firms, and from medical products makers to medical services firms focused on increasing health care efficiency and early disease detection.

Mike Cintolo, editor of The Cabot Market Letter, thinks Myriad Genetics (NASDAQ: MYGN) could be a "big winner in 2009," The company is a lead in the new field of cancer predisposition testing. For Mike's full report, read Top Stock Picks '09: Myriad Genetics.

Chuck Carlson, editor of The DRIP Investor, sees both quality and potential in Bristol-Myers Squibb (NYSE: BMY). For Chuck's full report, read Top Stock Picks '09: Bristol-Myers Squibb.

It's been a tough year for many industries -- there's no denying it. Retailers of all stripes, oil companies, construction firms, financials, basic materials companies -- you name it, it's down.

So, are there any safe havens?

Historically, in times of economic uncertainty the pharmaceutical industry, along with consumer staples, is often the "go to" place where, at a minimum, you can count on a nice dividend yield to shield your portfolio from gigantic losses. Not anymore.

In this downturn even stalwarts such as Merck (NYSE: MRK) and Pfizer (NYSE: PFE) trade near their multi-year lows, despite offering generous yields.

What about biotechs? That sector has performed much better.

However, one of my favorite biotech names, Elan (NYSE: ELN), is struggling.

At the start of the year, ELN was looking strong. Its stock was up by 50% by mid-summer. Since then shares have collapsed and now trade in the mid-single digits.

I profiled the company on July 2, with one caveat: If late-stage testing of a new Alzheimer's drug called bapineuzumab doesn't go as planned, then ELN will trade lower.

About a month later, the company announced that the results of a Phase II clinical study showed the drug does safely treat the symptoms of Alzheimer's disease, but the results were not statistically significant, and the 234-person Phase II study would have to be broadened to a much larger Phase III study to be considered for FDA approval.

The shares fell 17% on the announcement, but that was just the start. As is often the case, when it rains, it pours.

"Investors should keep a defensive posture," says Richard Moroney. However, the editor of the blue chip advisory service, Dow Theory Forecasts, see opportunity in two drug stocks that he has just added to his buy list.

"In general, we prefer to let the market's action signal that the point of maximum pessimism has passed before deploying our cash reserves. But we intend to remain engaged, looking for stocks capable of bucking the bearish trend.

"Biogen Idec (NASDAQ: BIIB) produces biotechnology drugs that treat non-Hodgkin's lymphoma and multiple sclerosis. Per-share profits jumped 69% and operating cash flow surged 71% in the September quarter.

"Wall Street expects per-share-profit growth of 9% in 2009 and 7% in 2010, but good news on Biogen's most-promising drug could render those targets conservative.

"At 12 times estimated 2009 earnings, Biogen shares are the cheapest of the six largest U.S. biotech stocks. Biogen is being initiated as a Focus List Buy and a Long-Term Buy.

"AstraZeneca (NYSE: AZN) is being added to the Buy List. The British drugmaker offers an intriguing blend of value and growth potential. A study released this month showed that the company's cholesterol drug Crestor reduced the risk of various heart problems by 44%.

"The study could potentially expand Crestor's addressable market to include millions of new patients, though AstraZeneca is soft-pedaling the potential benefits. AstraZeneca, which earns a Quadrix Overall score of 94 and yields 4.5%, is being added to the Buy List."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Cisco (NASDAQ: CSCO) is recently up 28c to $18.15 in pre-open trading. CSCO is expected to report Q1 EPS on November 5. Morgan Stanley lowered its price target to $24 from $29. CSCO November option implied volatility of 74 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Biogen Idec (NASDAQ: BIIB) is recently trading down $3.69 to $38.25 in pre-open trading. BIIB & ELN disclosed another confirmed a case of PML in MS patient treated with Tysabri in the U.S.; two others were disclosed on July 31 in Europe. Cowen says: "We believe BIIB shares 25% undervalued relative to the market assuming no contribution from Tysabri." BIIB November option implied volatility of 74 is above its 26-week average of 47 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Analyst upgrades:

• Calyon upgraded major network carriers based on falling oil prices and capacity cuts. The analyst is positive over the next 12 months but cautious short-term given the uncertain economy, and volatile markets and oil prices. AMR Corp (NYSE: AMR) and Delta Air (NYSE: DAL) were upgraded to Add from Neutral and UAL Corp (NASDAQ: UAUA) was raised to Neutral from Reduce.
• Ryanair (NASDAQ: RYAAY) was upgraded at Citigroup to Buy from Hold.
• Boardwalk Pipeline (NYSE: BWP) was raised to Buy from Hold at Deutsche Bank.
• Cowen lifted Biogen Idec (NASDAQ: BIIB) to Outperform from Neutral.
• JP Morgan upgraded Choice Hotels (NYSE: CHH) to Neutral from Underweight following the better-than-expected Q3 report.
• Oppenheimer upgraded shares of Integra LifeSciences (NASDAQ: IART) to Outperform from Perform on valuation, the company's minimal exposure to economic conditions, and expectations for margin improvement and a rebound in organic growth.

Analyst downgrades:

• Sherwin-Williams (NYSE: SHW) and AerCap Holdings (NYSE: AER) were downgraded to Neutral from Overweight at JP Morgan.
• UBS downgraded Embarq (NYSE: EQ) to Neutral from Buy following the CenturyTel (NYSE: CTL) merger announcement.

Shares of drugmaker Biogen Idec Inc. (NASDAQ: BIIB) are higher this morning after the company posted an 84% surge in its fourth-quarter profit, driven by strong sales of its multiple sclerosis drugs Avonex and Tysabri.

The company said its profit increased during the fourth quarter to $201.2 million, or 67 cents per share. This is a significant jump from the same period of last year when the company reported a profit of $108.6 million, or 32 cents per share. Included in Biogen's earnings figures were costs related to merger, and expenses related to the company's stock option.

Excluding that, the drugmaker's quarterly profit gained 45% and its earnings per share came in at 89 cents. Analysts were expecting the company show earnings of only 80 cents per share.