FUNDVIEW-Franklin fund sees opportunity in cheap biotechs
* Sees little downside from proposed healthcare reforms
* Says Gilead Sciences is favorite large-cap
* Likes Ardea Biosciences in small and mid-cap space
* Sees number of takeover possibilities in biotech
* Says Ardea, BioMarin, Celgene attractive takeover targets
By Suzannah Benjamin
BANGALORE, July 6 (Reuters) - Biotechnology stocks are likely to thrive once the final shape of U.S. healthcare overhaul becomes clear, a portfolio manager for a biotechnology-focused fund said.
"When President Barack Obama released his budget proposal in February, he included a number of proposals that were viewed as negative for the healthcare sector, particularly the biotechnology sector," said Evan McCulloch of Franklin Biotechnology Discovery Fund FBDIX.O.
Stocks have sold off on concerns about the possible negative impact of healthcare reforms, McCulloch said, but the selloff has also produced an opportunity in biotech stocks that now offer attractive valuations and little downside. Continuación...