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We’re two weeks into third-quarter earnings season, and next week is seeing over 1,000 companies report their earnings – do you have a watch list prepared?

We ran a screen on biotech stocks that are reporting their earnings next week for those that have seen significant buying interest from “smart money” institutional investors (including hedge fund and mutual fund managers) over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Institutional investors may be expecting stellar earnings from these companies – do you? Use this list as a starting-off point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO): Engages in the discovery and development of cancer therapeutics. Market cap of $683.57M. Earnings to be released on 11/02. Net institutional shares purchased over the current quarter at 10.8M, which is 33.34% of the company's 32.39M share float. The stock is a short squeeze candidate, with a short float at 6.28% (equivalent to 9.2 days of average volume). The stock has gained 5.73% over the last year.

2. Amyris Biotechnologies Inc. (NASDAQ:AMRS): An integrated renewable products company that offers renewable compounds for a variety of markets. Market cap of $824.30M. Earnings to be released on 11/01. Net institutional shares purchased over the current quarter at 4.3M, which is 25.79% of the company's 16.67M share float. The stock is a short squeeze candidate, with a short float at 11.01% (equivalent to 15.11 days of average volume). The stock has gained 7.19% over the last year.

3. NPS Pharmaceuticals, Inc. (NASDAQ:NPSP): Engages in the development specialty therapeutics for gastrointestinal and endocrine disorders. Market cap of $616.05M. Earnings to be released on 11/03. Net institutional shares purchased over the current quarter at 19.0M, which is 22.17% of the company's 85.69M share float. The stock is a short squeeze candidate, with a short float at 5.54% (equivalent to 5.28 days of average volume). The stock has gained 15.48% over the last year.

4. Optimer Pharmaceuticals, Inc. (NASDAQ:OPTR): Focuses on discovering, developing, and commercializing hospital specialty products worldwide. Market cap of $629.57M. Earnings to be released on 10/31. Net institutional shares purchased over the current quarter at 7.0M, which is 17.56% of the company's 39.86M share float. The stock is a short squeeze candidate, with a short float at 14.3% (equivalent to 5.14 days of average volume). The stock has performed poorly over the last month, losing 16.09%.

5. Targacept, Inc. (NASDAQ:TRGT): Engages in the design, discovery, and development of novel Neuronal Nicotinic Receptors (NNR) Therapeutics for the treatment of diseases and disorders of the central nervous system. Market cap of $574.47M. Earnings to be released on 11/01. Net institutional shares purchased over the current quarter at 4.0M, which is 13.90% of the company's 28.77M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.01). The stock is a short squeeze candidate, with a short float at 5.69% (equivalent to 5.37 days of average volume). The stock has lost 29.24% over the last year.

6. Sequenom Inc. (NASDAQ:SQNM): Provides products, services, diagnostic testing, applications, and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural and livestock research. Market cap of $459.20M. Earnings to be released on 11/03. Net institutional shares purchased over the current quarter at 11.3M, which is 12.60% of the company's 89.68M share float. The stock is a short squeeze candidate, with a short float at 18.8% (equivalent to 9.38 days of average volume). It's been a rough couple of days for the stock, losing 6.09% over the last week.

7. Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI): A commercial-stage biotechnology company that primarily focuses on oncology and hematology. Market cap of $472.95M. Earnings to be released on 11/03. Net institutional shares purchased over the current quarter at 5.1M, which is 10.91% of the company's 46.74M share float. The stock is a short squeeze candidate, with a short float at 14.16% (equivalent to 6.58 days of average volume). The stock has had a good month, gaining 12.82%.

8. Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ): Develops and commercializes products for neurology and psychiatry primarily in the United States. Market cap of $1.55B. Earnings to be released on 11/01. Net institutional shares purchased over the current quarter at 2.5M, which is 9.99% of the company's 25.02M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.19). After a solid performance over the last year, JAZZ has pulled back during recent sessions. The stock has performed poorly over the last month, losing 14.07%.

9. Xenoport, Inc. (NASDAQ:XNPT): Focuses on developing and commercializing internally discovered product candidates that utilize the body's natural nutrient transport mechanisms to enhance the therapeutic benefits of drugs. Market cap of $191.73M. Earnings to be released on 11/02. Net institutional shares purchased over the current quarter at 2.1M, which is 6.58% of the company's 31.93M share float. The stock is a short squeeze candidate, with a short float at 10.5% (equivalent to 10.24 days of average volume). The stock has performed poorly over the last month, losing 15.34%.

10. Ariad Pharmaceuticals Inc. (NASDAQ:ARIA): Focuses on the discovery, development, and commercialization of small-molecule drugs for the treatment of cancer. Market cap of $1.48B. Earnings to be released on 11/03. Net institutional shares purchased over the current quarter at 7.9M, which is 6.23% of the company's 126.83M share float. Exhibiting strong upside momentum--currently trading 13.31% above its SMA20, 15.32% above its SMA50, and 28.09% above its SMA200. The stock has had a couple of great days, gaining 9.38% over the last week.

11. Cornerstone Therapeutics Inc. (NASDAQ:CRTX): Engages in the acquisition, development, and commercialization of branded and generic pharmaceuticals primarily for the respiratory and related markets in the United States. Market cap of $164.85M. Earnings to be released on 10/31. Net institutional shares purchased over the current quarter at 438.1K, which is 5.45% of the company's 8.04M share float. It's been a rough couple of days for the stock, losing 6.07% over the last week.

12. Codexis, Inc. (NASDAQ:CDXS): Develops proprietary biocatalysts for pharmaceuticals and biofuels markets. Market cap of $174.65M. Earnings to be released on 11/01. Net institutional shares purchased over the current quarter at 1.1M, which is 5.26% of the company's 20.92M share float. The stock is a short squeeze candidate, with a short float at 7.47% (equivalent to 8.95 days of average volume). The stock has lost 50.3% over the last year.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 12 Smart Money Biotech Picks Releasing Earnings Next Week