Investing in Biotech Stocks: Why the "ASCO Effect" Rally Could Start ...

A Wild Ride for Biotech Stocks

Traders scoured ASCO's Website and found two abstracts dealing with the company's cancer drug Zybrestat.

That was all it took.

Over a nine-trading-day stretch that began on May 1, 2011, OXiGENE shares soared 218% - on a massive spike in volume. If you include the intraday high, the stock gained as much as 245%.

Money Morning's premium affiliate, Private Briefing, has identified three oncology stocks that could benefit from the ASCO Effect. Click here to check out today's column - and find out everything you need to know.

A Closer Look at ASCO

Created in 1964, ASCO is a not-for-profit organization started by a group of physicians from the American Association of Cancer Research (AACR). Those researchers saw a need for a professional oncology society and set out with a mission to "conquer cancer through research, education, prevention and delivery of high quality patient care."

And with good reason: Behind heart disease, cancer is the No.2 cause of death in the United States.

Nearly 50 years after its founding, ASCO has become a key to oncology research. The Arlington, VA-based group is now global in scope, with members calling 100 different countries their home.

The diverse group includes clinical oncologists from all oncology specialties, sub-specialists and oncology healthcare professionals such as nurses and health care practitioners.

At ASCO's meeting, attendees share ideas and learn about cancer breakthroughs from therapies and diagnostics. The organization has attracted top clinicians and investigators to administer patient care and conduct research. On its Website, the organization boasts that it "will be recognized as the most trusted source of cancer information worldwide."

The boast is backed by statistics: Of the 600 medicines and vaccines developed through biotechnology and clinical trials, more than 40% deal with cancer treatments, according to the Pharmaceutical Research and Manufacturers of America.

Investors are hoping for a true "blockbuster," the kind of breakout drug that can bring in billions of dollars in revenue during its years of patent protection - and that can even transform the drug's developer into a lucrative takeover target.

[Editor's Note: In a just-issued research report, Private Briefing has identified three stocks that could benefit from the ASCO Effect - and pay off in other ways, too. To find out more, click here.]
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