Hot Biotech Stocks To Watch For 2014

Suppose we filled a jar with slips of paper with the names of biotech companies that have been around for at least 10 years and with a market cap of at $500 million or more written on them. The chances are quite good that if we pulled a random slip of paper out of that jar, the selected biotech's stock performed reasonably well over the last decade. Of course, the concept of survival of the fittest plays a big factor.

Not every biotech we picked would be a winner, though. Even with an incredible run in recent years for biotech stocks in general, several biotech stocks have lagged well behind their peers. Here are three of the worst performing biotech stocks of the last decade.

1. Lexicon Pharmaceuticals (NASDAQ: LXRX  )
Lexicon experienced its heyday in the first few years of the 21st century, but it's pretty much been downhill since then. Shares of the biotech have dropped more than 60% in the past 10 years.

Hot Biotech Stocks To Watch For 2014: Transpac Industrial Hldgs Ltd (T55.SI)

Transpac Industrial Holdings Limited, an investment holding company, provides venture capital to companies with capital appreciation potential in Asia. It invests in the securities of growing private companies principally located in China/Hong Kong SAR, Taiwan, Singapore, Malaysia, Thailand, and Indonesia. The company is based in Singapore.

Hot Biotech Stocks To Watch For 2014: Network Equipment Technologies Inc.(NWK)

Network Equipment Technologies, Inc. (NET), together with its subsidiaries, engages in the design, development, manufacture, and sale of voice and data telecommunications equipment for multi-service networks and associated services used by government organizations, enterprises, and carriers worldwide. The company offers voice solutions, such as the VX Series and the Quintum Series of switching media gateways that provide enterprise customers with voice interoperability solutions, IP-based solutions to government agencies, and traditional VoIP switching gateway solutions for SMBs and smaller branch offices within large enterprises. It offers multi-service solutions, which comprise Promina product line, a multi-service platform that provides network reliability and security; NX1000 platform, which offers a WAN switching solution to enable applications to integrate and aggregate into IP-based networks; and NX5010 platform that enables secure interconnection and extension of g eographically distributed grid computing clusters and storage area networks, providing data transfer. The company also offers SmartSIP product that allows standard SIP phones to be provisioned and used as extensions in a Microsoft Lync Server 2010 deployment. In addition, it provides installation and other professional services; hardware and software maintenance programs, parts repair, remote and on-site technical assistance, and customer training; and Web-based services. The company serves government customers, which include various federal and international agencies and organizations, such as civilian and defense agencies, and resellers to such entities; and enterprise customers comprising large enterprises, and small-to mid-sized businesses in various sectors. NET sells its products directly, as well as through relationships with integrators, resellers, and vendors of related technologies. The company was founded in 1983 and is headquartered in Fremont, California.

Top Tech Companies For 2014: Celldex Therapeutics Inc(CLDX)

Celldex Therapeutics, Inc., a biopharmaceutical company, focuses on the development, manufacture, and commercialization of novel therapeutics for human health care primarily in the United States. The company markets Rotarix to treat rotavirus infection. Its lead drug candidate, rindopepimut (CDX-110), is an immunotherapeutic vaccine in Phase III clinical trial to target the tumor-specific molecule, epidermal growth factor receptor variant III, as well as in Phase II clinical trial for the indication of recurrent glioblastoma. The company?s other lead drug candidates comprise CDX-011, an antibody-drug conjugate in Phase IIb clinical trial for metastatic breast cancer and melanoma indication; and CDX-1127, a human monoclonal antibody in Phase I clinical trial for the treatment of lymphoma/leukemia and solid tumors. Its additional clinical and preclinical programs consist of CDX-1401, an Antigen Presenting Cells Targeting Technology program in Phase I/II clinical trial to tr eat multiple solid tumors; and CDX-301, an immune cell mobilizing agent and dendritic cell growth factor in Phase I clinical for treating cancer, autoimmune disease, and transplant. The company?s preclinical products include CDX-1135, a molecule for treating renal disease; and CDX-014, a human monoclonal antibody-drug conjugate for the treatment of ovarian and renal cancer. It has research collaboration and license agreements with Medarex, Inc.; Rockefeller University; Duke University Brain Tumor Cancer Center; Ludwig Institute for Cancer Research; Alteris Therapeutics, Inc.; Thomas Jefferson University; 3M Company; University of Southampton; Amgen Inc.; Amgen Fremont; and Seattle Genetics, Inc. Celldex Therapeutics, Inc. was founded in 1983 and is headquartered in Needham, Massachusetts.

Advisors' Opinion:

• [By Brian Nichols]

  Celldex, is the first, of several companies that focus on immunotherapy treatments to make this list. I am particularly bullish on immunotherapy, because I believe that immunotherapy candidates will become the trend in 2012 with several companies releasing impressive late trial results. I think there are several companies that could be acquired in 2012, and I think that multiple stocks within the immunotherapy scope of treatment will trade with gains of more than 100% in 2012. Therefore, Celldex is the first of many in this category that I expect to post large gains in 2012.

  Celldex is trading with significant optimism, returning a YTD gain of 100%, as investors await data from its clinical trials. The company has two drugs in late stage testing; Rindopepimut & CDX-011. Rindopepimut treats one of the most deadly forms of cancer, Glioblastoma, and has shown encouraging data in early testing. One factor that makes Rindopepimut so appealing is that it's being used to treat both Frontline and Recurrent glioblastoma, and because of the difficulty involved in creating an effective drug to treat glioblastoma investors are extremely optimistic of its potential. CDX-011 treats one of the most common forms of cancer, breast cancer, which has returned very encouraging data as well. I believe the optimism, and positive data surrounding both of the company's lead candidates is enough to entice a solid uptrend in shares of Celldex. And if trials continue to show strong results then this stock could very well become the next multi-billion dollar company in late stage biotechnology with the potential for two blockbuster drugs, which is very exciting for biotechnology investors.

  Biotechnology is a much-diversified industry with companies that treat a variety of diseases and have significant upside potential. My favorite class of drugs is immunotherapy, but as you can see I have listed a variety of companies that treat multiple conditions. I am confident that 2012 will be a year filled with massive ! returns in biotechnology, and the 5 stocks listed above, are just a few that have significant upside potential. I believe that each of the stocks on this list has upside of at least 100% over the next year, from its current valuation, and next week I will release the top 5 that have the greatest upside potential based on growth, speculation, clinical trials, and current valuation.