Anthera Pharmaceuticals Inc. – ANTH   ↑Top

anthera.com

Focus: Inflammatory and autoimmune diseases including lupus

Compound: blisibimod

Why Anthera Made the Watchlist: Targeting niche indications, Anthera is considered a good addition to a healthy portfolio "basket."

Analyst’s Take: "ANTH is one of the companies that investors need to buy a basket of, to diversify. There could be some very large upside."—John McCamant, Medical Technology Stock Letter

BIND Therapeutics Inc. – BIND   ↑Top

bindtherapeutics.com

Focus: Cancer

Compounds: Accurins (targeted therapeutics developed using a nanoengineering platform)

Why BIND Made the Watchlist: Led by a "good team," data in two phase 2 trials for BIND-014 (prostate cancer and non-small cell lung cancer) is expected in H2/14.

Analyst’s Take: "BIND is run by a team that has built and sold companies in specialty drug delivery in the past."—Mike King, JMP Securities

Celgene Corp. – CELG   ↑Top

celgene.com

Focus: Cancer, immune system disease and inflammatory disease

Compounds: Revlimid (lenalidomide) for multiple myeloma; apremilast for rheumatoid and psoriatic arthritis; Pomalyst (pomalidomide) for multiple myeloma and myelofibrosis; Abraxane (paclitaxel protein-bound particles) for pancreatic cancer and melanoma

Why Celgene Made the Watchlist: The large-cap biotech has a deep pipeline and ongoing catalysts for a number of its compounds.

Analyst’s Take: "It's scary to think about how big the CELG story could get."—Mike King, JMP Securities

Celldex Therapeutics Inc. – CLDX   ↑Top

www.celldex.com

Focus: Cancer treatments using monoclonal antibodies and immunotherapies

Compounds: Rindopepimut; CDX-011

Why Celldex Made the Watchlist: Rindopepimut, a peptide-based therapeutic vaccine for brain cancer, leads a strong pipeline that includes CDX-011, a breast cancer treatment.

Analyst’s Take: "The bread-and-butter pipeline of CLDX's later-stage products to looks very compelling."—Mara Goldstein, Cantor Fitzgerald

Cerus Corp. – CERS   ↑Top

cerus.com

Focus: Blood safety

Product: Intercept Blood System

Catalyst: FDA approval of its platelet and plasma pathogen inactivation technology

Why Cerus Made the Watchlist: An "organic growth play," Cerus is expected to reap the benefits of improving sales in Europe and an anticipated premarket approval in Q3/14, with a U.S. launch expected in Q4/14.

Analyst’s Take: "CERS is an operating company that has cash flow. It should be profitable in a year or two, especially when the FDA approves its Intercept Blood System."—George Zavoico, H.C. Wainwright & Co.

CytoSorbents Corp. – CTSO   ↑Top

cytosorbents.com

Focus: Removal of toxins from the blood

Product: CytoSorb

Why CytoSorbents Made the Watchlist: The company's cytokine filtration system uses proprietary polymer bead technology to "purify" blood in the event of cytokine storm.

Analyst’s Take: "CTSO is emerging with a new technology that represents out-of-the-box thinking in terms of trying to clear blood."—George Zavoico, H.C. Wainwright & Co.

Incyte Corp. – INCY   ↑Top

incyte.com

Focus: Oncology and inflammation

Compound: Jakafi (ruxolitinib); approved for treatment of myelofibrosis

Why Inctye Made the Watchlist: In addition to Jakafi, a potential "blockbuster" in a clinical trial for pancreatic cancer, the company's pipeline includes IDO inhibitors, a promising cancer immunotherapy.

Analyst’s Take: "INCY is a small molecule powerhouse with an approved cancer drug and one of the best small molecule pipelines in the industry."—John McCamant, Medical Technology Stock Letter

Novavax Inc. – NVAX   ↑Top

novavax.com

Focus: Seasonal and pandemic influenza; respiratory syncytial virus (RSV)

Product: Recombinant nanoparticle (VLP) vaccine platform

Why Novavax Made the Watchlist: The company's "game-changing" technology promises to produce pandemic flu-fighting vaccines in a short timeframe; phase 2 data is expected for its RSV vaccine candidate following scheduled study completion in April 2014.

Analyst’s Take: "NVAX's RSV vaccine is potentially game-changing with minimal competition."—John McCamant, Medical Technology Stock Letter

Omeros Corp. – OMER   ↑Top

omeros.com

Focus: Inflammation, coagulopathies and central nervous system disorders related to surgical procedures

Product: Omidria (OMS302); PharmacoSurgery platform

Catalyst: Approval and marketing of Omidria, expected later in 2014

Why Omeros Made the Watchlist: The company has a diverse platform that includes Omidria, intended to reduce inflammation during intraocular lens replacement surgery.

Analyst’s Take: "OMER is under the radar; its lead compound, Omidria, could be used in millions of intraocular lens surgeries."—George Zavoico, H.C. Wainwright & Co.

OncoGenex Pharmaceuticals Inc. – OGXI   ↑Top

oncogenex.com

Focus: Cancer

Compounds: Custirsen, apatorsen

Catalyst: Phase 3 trial results for custirsen due mid-2014

Why OncoGenex Made the Watchlist: Data from the company's phase 3 trial evaluating custirsen in addition to docetaxel in the treatment of metastatic castrate-resistant prostate cancer was expected.

Analyst’s Take: "OGXI has a phase 3 milestone coming midyear in an important prostate cancer trial."—George Zavoico, H.C. Wainwright & Co.

Pharmacyclics Inc. – PCYC   ↑Top

pharmacyclics.com

Focus: Leukemias, lymphoma, other cancers

Product: Imbruvica (ibrutinib)

Why Pharmacyclics Made the Watchlist: With Imbruvica positioned for approval in additional blood cancer indications, including chronic lymphocytic leukemia, the company is expected to build on the drug's 2013 success.

Analyst’s Take: "PCYC's Imbruvica is going to be the biggest drug in hematologic malignancy."—Mike King, JMP Securities

Verastem Inc. – VSTM   ↑Top

verastem.com

Focus: Cancer

Compounds: Cancer stem cell pathway inhibitors

Why Verastem Made the Watchlist: Interim data for the company's mesothelioma therapy is expected in Q1/14.

Analyst’s Take: "VSTM has a very, very good technology foundation."—Mara Goldstein, Cantor Fitzgerald