Analysts name top stock picks as EU biotechs enter 2015

The European biotech sector is on something of a roll. While they continue to be overshadowed by their peers in the U.S., European biotech companies enjoyed a big 2014 by their standards. And with multiple local players well placed to make a splash in some of the hottest niches of the industry, the stage is set for the momentum to continue in 2015.

Analysts at Jefferies marked the new year by picking out their top trends and companies in European biotech. The analysts named Ablynx (EBR:ABLX), Cosmo Pharmaceuticals (SIX:COPN) and Genmab (CPH:GEN)--all of which are up at least 25% over the past year--as their top stock picks for 2015. Of the group, Genmab has the most significant, near-term data readout for its FDA breakthrough designated treatment, daratumumab.

Phase II results of the multiple myeloma drug it is developing with Johnson & Johnson's ($JNJ) Janssen are due in the next 6 months. The Phase II data could lay the groundwork for a 2016 launch as a salvage therapy as Genmab and Janssen push for an accelerated approval. Janssen is also trialling the anti-CD38 antibody in multiple other indications beyond its use as a salvage monotherapy, setting the partners up for a string of data readouts in the coming years.

Cosmo also expects to post data in the first half of 2015. The Italian drugmaker is finally due to wrap up a Phase III trial of its travelers' diarrhea treatment for Europeans travelling in Latin America and India. Cosmo recruited the final group of patients in Latin America after the stalling of the Indian clinical trial sector affected its ability to complete the study. Phase III data from a trial of Cosmo's chromoendoscopy diagnostic are also due in 2015.

Jefferies' final biotech stock pick, Ablynx, is still years away from delivering Phase III data on its drug for the rare blood disorder TTP. But after performing solidly in 2014 without hitting the peaks of some of its peers--the stock is up 26% over the past year--Jefferies thinks the Belgian biotech can wheel and deal its way to a big 2015.

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