"We believe OncoGenex (OGXI) is undervalued relative to its peers," says biotech expert John McCamant.

The editor of The Medical Technology Stock Letter suggests, "One of the best ways to start evaluating development stage biotech stocks is to evaluate three fundamental considerations to begin the screening process. We ask, 'What is the market potential?' 'How long before the drug development candidate is likely to be approved?' and 'How much development risk remains?'

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.

"My top stock pick for 2010 is MannKind Corp. (MNKD), which is developing a a novel formulation of inhalable insulin called Afresa," notes Nate Pile.

In his Nate's Notes newsletter, he explains, "I would emphasize that while the stock must be considered speculative until the FDA delivers a ruling in mid-January of next year, I believe the clinical data that has been submitted by the company is likely to warrant approval."

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.

"Nabi Biopharmaceuticals (NABI) is a small $250 million market cap company has a unique product with obvious benefits for a giant market," says small-cap growth stock specialist Dave Dyer.

In his Dave Dyer's Newsletter, he explains "The company has developed a vaccine against nicotine." He continues, "Smoking is the world's largest preventable cause of death, but current treatments are ineffective because it is so easy to relapse.

"Gilead Sciences (NASDAQ: GILD) develops treatments for life-threatening diseases and specializes in drugs for HIV, the virus that causes AIDS," notes Hannah Choe.

The contributing editor to Personal Finance explains, "Already the market leader in HIV antivirals, Gilead is in the beginning stages of developing Quad, the first-ever, four-in-one AIDS pill.

"The manufacture of HIV drugs, which accounts for more than three-quarters of revenue, is Gilead's highest-grossing business. This segment has held up through the recession; in the second quarter product sales for the antiviral franchise grew 26% from a year ago to $1.41 billion.

"I am recommending Celgene (NASDAQ: CELG) as part of an 'offense-defense' thesis," says Ian Wyatt. In Top Stock Insights, he reviews the leading biotechnology company.

Wyatt explains, "Celgene engages in the discovery of therapies designed to treat cancer and immune inflammatory related diseases. They have a number of products at the commercial stage including REVLIMID, THALOMID and VIDAZA.

"Celgene is also researching stem cells derived from the human placenta as well as from the umbilical cord, thus tapping into a promising new technology while avoiding the political and ethical questions dogging others involved in stem cell research.

"Sangamo BioSciences (NASDAQ: SGMO) has again received significant scientific validation for its proprietary technology," says biotech expert John McCamant.

In The Medical Technology Stock Letter, he explains, ""Part of what has gotten investors so excited about stem cells was the concept that some day scientists would be able to create 'personalized' stem cell types for individual therapy. We believe that this is the break that was needed to realize the potential of stem cell therapy."

"Stem cells differ from other cell types in two fundamental ways. First, they are unspecialized cells capable of renewing themselves through cell division.

"Second, under certain conditions, they can be induced to become tissue- or organ-specific cells with special functions.

"Gilead Sciences (NASDAQ: GILD), one of the world's largest biotechs, is a stock for all seasons," say growth expert Alexander Green.

The investment director for The Oxford Club explains, "It's a fine company with a solid balance sheet, a recession-proof business and excellent growth prospects."

"Gilead focuses on three main areas, including cardiovascular conditions and respiratory diseases. (Many may have taken its anti-influenza drug Tamiflu, Letairis to treat hypertension, or Macugen to treat macular degeneration.)

For speculative investors aware of the risks associated with a development stage drug company, Karim Rahemtulla looks to Medivation (NASDAQ: MDVN), a play on development of a drug to treat Alzheimer's.

In his Xcelerated Profits Report, the advisor explains, "Medivation continues to make good clinical trial progress with its Dimebon drug for Alzheimer's Disease.

"The firm received some mainstream media attention at the recent International Conference on Alzheimer's Disease (ICAD) in Vienna. Reuters, Forbes and Bloomberg all reported that Dimebon is changing the way scientists think about Alzheimer's.

"In looking for a highly speculative stock for our portfolio, I have settled on MannKind Corp. (NASDAQ: MNKD), a company that is developing an inhaled insulin product," says Nate Pile.

In his growth-oriented Nate's Notes, the advisor cautions, "I believe we are looking at a situation in which we will either lose most of our money, or triple (or better) our investment in a fairly short period of time."

"In a nutshell, the company's near-term fate hinges upon AFRESA, a novel, ultra rapid acting mealtime insulin therapy being studied for use in adult patients with type 1 and type 2 diabetes mellitus for the treatment of hyperglycemia.

"Working against the company is the fact that there has never been an inhaled insulin product approved for commercial use that has worked very well.

"Biotech company Celgene Corp. (NASDAQ: CELG) is a prime example of a stock that plays both offense and defense," says Ian Wyatt.

In his Top Stock Insights, he explains, "The valuation is low and growth is attractive. With the pipeline of products in development, Celegene offers investors a huge upside potential."

"Celgene offers investors a steady product base, a variety of drug treatments in development and a cash pile ready to purchase existing technologies.

"Celgene engages in the discovery of therapies designed to treat cancer and immune-inflammatory related diseases. They have a number of products at the commercial stage.

"Generic drug mak Teva Pharmaceutical, Ltd. (NASDAQ: TEVA) delivered respectable earnings results," says Jack Adamo, who added the stock his Insiders Plus model portfolio.

"The company's earnings were up 4% on a proforma non-GAAP basis. In this case, that's the correct measurement. Net GAAP earnings were up tremendously, but aren't really representative of normal business factors.

"Although Teva gets much of its earnings from its proprietary multiple sclerosis drug, Copaxone, its primary business is generic drugs. That segment is inherently lumpy because profitability is greatly affected by which generic drugs it brings to market before any other generic company.

"Celgene (NASDAQ: CELG) reported their fourth quarter and year end numbers which showed strong revenue growth." observes biotech sector expert John McCamant.

The editor of The Medical Technology Stock Letter explains, "We remain excited about CELG's growth prospects and management's ability to deliver the goods.

"Total revenue for the quarter grew 50% to $623 million, with the primary driver being Revlimid sales of $369.4 million. Sales of their two other drugs, Thalomid and Vidaza generated $126.8 million and 69.7 million, respectively.

"The medical arena has long been my favorite sectors; perhaps the best opportunities within the medical sector will be with companies who provide life-saving products for the treatment of serious diseases," says Dave Dyer.

In The Dave Dyer Newsletter, he explains, "That is why Celgene (NASDAQ: CELG) is an excellent choice in this economy." Here's his look at this "recession-resistant" company.

"Celgene is a multinational biopharmaceutical company with a $29 billion market cap and no debt. Revlimid is their blockbuster drug with multi-billion dollar potential. It was first approved by the FDA in 2005, and it has many good years of patent protection ahead of it.

"Revlimid delays the onset of progression of deadly diseases -- leprosy and multiple myeloma. No wonder it is worth $6,000 per month. It is a close derivative of their other drug Thalomid. This drug was used by another company about 50 years ago to treat morning sickness in pregnant women and caused numerous birth defects.

"Despite a recession, we believe that demand for its products will remain strong. For example, if you have multiple myeloma, you would probably do just about anything before missing a payment for your monthly dose of Revlimid.

"Bull markets have been few and far between this summer; one of the few sectors that looks to have re-entered a bull trend is biotechnology," says international investing expert Nick Vardy.

In his Global Bull Market Alert, he explains, "The S&P Biotech ETF (ASE: XBI) looks to capitalize on this traditionally highly volatile and boom bust burdened sector." Here's his bullish assessment.

"Why the sudden merger and acquisitions frenzy in biotech? Put simply, 'Big Pharma' is cash-rich but innovation-poor.

"As patents on huge profit generators such as Pfizer's Lipitor expire, the traditional pharmaceutical industry is eager to refill its emptying drug pipelines.

"On the one hand, Big Pharma hopes giant acquisitions jump start pharmaceuticals' sputtering innovation machines. On the other hand, existing biotech blockbusters would also hedge against the coming collapse in earnings from drugs that are coming off patent.

"Alkermes (NASDAQ: ALKS) recently produced a two-pronged positive surprise; an increase in the size of their already existing stock buyback program and a boost in their financial guidance," says John McCamant.

In his Medical Technology Stock Letter, the biotech sector expert looks at this firm which focuses on treatments for central nervous system disorders, alcohol depenence, and schizophrenia. Here is his review.

"Both of these moves were made possible by the announcement that ALKS has received a $40 million payment from Eli Lilly, their former partner for the now defunct AIR Insulin program.

"ALKS now has the authorization to buy back up to $215 million in common stock. To date, the company has bought back roughly eight million shares of common stock for a cost of about $106 million.

"Additionally, as noted, ALKS has upped their financial guidance for fiscal 2009. Operating income for the year is now expected to end up on the positive side of the ledger, with ALKS anticipating $10-$15 million for the full year.