Three Small Cap Biotech Stocks Added to Citi's Most Preferred List (ATRA) (NVAX) (PBYI)

Three small cap biotech stocks - Atara Biotherapeutics (NASDAQ: ATRA), Novavax (NASDAQ: NVAX) and Puma Biotech (NYSE: PBYI) are moving sharply higher today after Citi added all three to their Most Preferred list in Biotech.

On ATRA: "We are adding ATRA because we like their rapidly advancing T-cell therapies, expect an update on their collaboration with Memorial Sloan Kettering at ASCO, and see Ph2 data from PINTA 745 in H2:15 as overlooked catalysts.

On NVAX: "We see an attractive risk/reward profile going into clinical trial results for 3 vaccines over next 6 months for NVAX, which could boost confidence in this platform and raise the stock's visibility."

On PBYI, "For PBYI, we expect positive ExteNET data in mid-'15 to drive strong appreciation and potentially lead to a takeout in H2:15."

Meanwhile, the firm removed Alkermes plc (NASDAQ: ALKS), Epizyme (NASDAQ: EPZM), Gilead Sciences (NASDAQ: GILD), Intercept Pharma (NASDAQ: ICPT), and Acceleron Pharma (NASDAQ: XLRN) from their Most Preferred List.

For ALKS: "We are removing ALKS because coverage of this stock has been transferred to the Specialty Pharmaceuticals team. "

For EPZM: "We have downgraded EPZM to Neutral given challenges to EPZ-6438 in NHL and EPZ-5676’s uncertain path forward."

For GILD: "we don’t see important near-term catalysts ahead.

For ICPT - "We also believe that near-term catalysts have played out for ICPT now that competitors' data disappointed and the stock appreciated considerably."

For XLRN - "we are positive on the MDS and beta thalassemia data ahead, but have more conviction that other stocks will have more near-term momentum."

The firm also added Acorda Therapeutics (NASDAQ: ACOR) and Alexion Pharma (NASDAQ: ALXN) to their Least Preferred list and removed ARIAD Pharma (NASDAQ: ARIA), Arqule (NASDAQ: ARQL), Supernus Pharmaceuticals (NASDAQ: SUPN) from their Least Preferred list.

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