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Most stocks have experienced very sharp drops as the markets have plummeted over economic concerns. However, biotechs are not as economically sensitive as other companies and therefore are likely to rebound sharply sooner or later.

These biotech companies all have interesting products in the pipeline which could become major catalysts for a stock price surge in the future. Many of these stocks fell from their long term highs, on analyst downgrades, other issues. Others have just been seemingly ignored by the stock market and do not appear to be fully valued. Positive results on clinical trials, partnership agreements and other news are just some of the catalysts that could send these stocks much higher. Almost all of these biotech companies have very substantial amounts of cash or cash equivalents on their balance sheets. Most of them have either little to no long term debt. Below, I detail why these biotech stocks could be poised for major gains in the near future. Here are the stocks that have big upside potential.

Idera Pharmaceuticals, Inc. (NASDAQ:IDRA) shares are trading for $1.39. Idera is a biotechnology company based in Massachusetts. The 50-day moving average is $1.42 and the 200-day moving average is $2.21. The 52-week range for these shares is 95 cents to $3.73. Idera has about $24 million in cash on the balance sheet and this is equivalent to about 85 cents per share in cash. Idera has a number of promising candidates in the pipeline to which are aimed at treating infectious diseases, autoimmune, respiratory and inflammatory diseases, as well as cancer. Idera's IMO-2125 is a potential treatment for Hepatitis C which is in phase 1 stage. Hepatitis C treatments have blockbuster billion dollar drug potential. IMO-3100 is also in phase 1 and it is for autoimmune and inflammatory diseases. IMO-2134 is in phase 1 for respiratory diseases.

The company has a couple of other candidates in preclinical trials and it has a partnership with Merck for some of the candidates. View the pipeline chart here. Additional partnership agreements or positive news on any of the candidates in phase 1 could send the shares soaring, especially from this low range. Some analysts have a price target of about $10 per share, which I think is too high for now, but that can be seen here. The recent market correction has caused this stock to drop to bargain levels and it is likely to rebound sharply soon. When the rally starts, it should propel this stock back to about $2 which is right between the 50 and 200-day averages.

Inhibitex, Inc. (NASDAQ:INHX) is trading around $3.74. Inhibitex is a biotechnology company based in Georgia. This company is working on treatments for shingles (FV-100) and hepatitis C (INX-189). Inhibitex has a promising pipeline and a partnership with Pfizer (NYSE:PFE). These shares have traded in a range between $1.74 to $5.23 in the last 52 weeks. The 50-day moving average is $3.20 and the 200-day moving average is $3.39.

An analyst at Canncord Genuity recently raised the price target on Inhibitex shares to $7. In a Barrons.com article, it states "For Inhibitex, Farmer raised his target price from $5 to $7, on the release of positive seven-day dosing data from a Phase Ib trial evaluating INX-189 for treatment of hepatitis C virus infection. “Though early, we think these data further strengthen the value proposition of INX-189 and support further evaluation in longer-term combination HCV trials,” he wrote in a research note. “Clinical-stage nucs like INX-189 will likely form the backbone of future HCV therapy, in our view, and scarcity could make INX-189 a highly coveted asset once longer-term safety trials are complete.” Read the article here. Other analysts have even higher price targets of up to $9 per share.

Antares Pharma Inc., (AIS) is trading around $2.30. Antares is developing medical treatments and self-injection devices that allow patients the ability to administer medicines. These shares have traded in a 52-week range between $1.36 to $2.65. The 50-day moving average is $2.28 and the 200-day moving average is $1.95. Earnings estimates for AIS are for a loss of 5 cents per share for 2011 and profit of 13 cents for 2012. Antares has partnership agreements with a number of well-known companies like Teva Pharmaceuticals (NYSE:TEVA). This company has about $33 million in cash on the balance. Earlier this year. Oppenheimer set a outperform rating and a $3.20 price target for the stock, see that here.

Biosante Pharmaceuticals, Inc. (BPAX) is trading around $2.56. Biosante is a biotechnology company based in Illinois. These shares have traded in a 52-week range between $1.29 to $2.60. The 50-day moving average is $2.49 and the 200-day moving average is $2.43. Earnings estimates for BPAX are for a loss of 49 cents per share for 2011 and loss of 13 cents for 2012. BPAX has a licensing agreement with Teva Pharmaceuticals for Bio-T-Gel which treats low testosterone levels. The NDA is pending with the FDA for this product and Teva is responsible for all regulatory and marketing. BPAX also has the right to receive up to $140 million in sales-based milestone payments from Azur for "Elestrin" (which targets estrogen) if it reaches certain predefined sales per calendar year. JMP Securities has a "market outperform" rating and a $6 price target for BPAX shares, which can be seen here.

Keryx Biopharmaceuticals, Inc. (NASDAQ:KERX) is trading around $3. Keryx is a biotechnology company based in New York. These shares have traded in a 5- week range between $2.58 to $5.91. The 50-day moving average is $3.43 and the 200-day moving average is $4.25. Earnings estimates for KERX are for a loss of 35 cents per share for 2011 and loss of 41 cents for 2012. Keryx has a number of interesting candidates in the product development pipeline. This company has two candidates "Perifosine" for multiple myeloma and colorectal cancer and "Zerenex" which targets hyperphosphatemia in patients with end-stage renal disease, both of which are currently in phase 3 trials. Now is a good time to buy cheap before a rebound.

AEterna Zentaris Inc. (NASDAQ:AEZS) is trading around $1.51. AEterna is a biotechnology company focusing on oncology and endocrine therapy and is based in Canada. These shares have traded in a 52-week range between $1.20 to $2.68. The 50-day moving average is $1.72 and the 200-day moving average is $1.92. AEterna has a very solid balance sheet with about $50 million in cash and almost no debt. AEZS has a number of interesting candidates in the product development pipeline (including some in phase 3 clinical trials) and a partnership with Keryx Biopharmaceuticals. It also has Centrotide on the market now which is a hormone treatment used with in vitro fertilization. Oppenheimer initiated coverage with an outperform rating and put a price target on $5.50 on the stock. See that here.

The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for educational purposes only.

Source: 6 Cheap Biotech Stocks With Big Upside Potential