"Instead we are going to look to long term stories in the bio and pharma sectors for some plays that march to the beat of their own drummers. Bio and pharma stocks, perhaps more than any other sector, move on a company-specific basis and generally have little in common with the movement of the broader market. This sector does have many companies that cannot be held for long, often there are catalysts on approvals and deals that mean you have to be a nimble trader. We have found six companies, however, that we think have exciting long term stories:

• Antares (ATRS) for its innovative drug delivery systems
• Arena (ARNA) could be a big player down the road and its obesity drug Belviq will only help
• Ibio (IBIO) gets funding from the federal government as well as Bill Gates so it does not burn much cash, has interesting technology and patents, and the potential to fill the need to quickly grow plant-based human vaccines for pandemics could prove positively enormous
• MannKind (MNKD) we like mostly for the Mann, Alfred Mann just sank more than $70 million of his own money in to shares, all the Billionaire philanthropist does is mint money and Afrezza looks to be approved this time around as an innovative and advantageous way to deliver insulin
• Spectrum Pharmaceuticals (SPPI) has promising cancer treatments on the market as well as in the pipeline and looks very well positioned for the future
• No homerun potential bio and pharma portfolio would be complete without a play on stem cells, and Pluristem's (PSTI) placental stem cells offer demonstrated promise without the ethical questions of embryonic stem cells "

http://seekingalpha.com/article/740001-33-000-american-portfolio-closing-a-position-and-moving-into-bio-and-pharma