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The market correction has created many new stock bargains and a number of biotech stocks have dropped to bargain levels. Now is a good time to start picking up cheap shares and set your portfolio up for some big gains in the coming months.

While the market correction has caused some biotechs to drop, the longer term outlook for these companies is not dependent on the economy. If you buy at or near the recent lows, you could end up just about doubling your money if these stocks hit the price targets set by analysts this year. Most analysts set targets based on where they believe a stock will trade at in the next 12 months or so.

Here are a number of biotech stocks that have price targets that are around double the current stock price:

Sequenom, Inc. (NASDAQ:SQNM) is trading around $4.59. Sequenom is a biotechnology company focused on diagnostic testing. The 50-day moving average is $5.34 and the 200-day moving average is $6.53. These shares have traded in a range between $4.40 to $8.71 in the last 52 weeks. SQNM recently announced plans to sell a test for Down Syndrome. Oppenheimer set an outperform rating and a $9 price target for SQNM shares. See that here.

Incyte Corporation (NASDAQ:INCY) shares are trading at $13.49. INCY is a biotechnology company with a pipeline that includes treatments for oncology, inflammatory, autoimmune and other diseases. These shares have a 52 week range of $12.58 and $21.15. The 50-day moving average is $14.70 and the 200-day moving average is $16.15. Earnings estimates for INCY are for a loss of $1.55 per share in 2011, and a loss of 84 cents for 2012. Brean Murray has set a $25 price target and a buy rating. See that here.

Novavax, Inc. (NASDAQ:NVAX) is trading around $1.46. NVAX is a biotechnology company based in Maryland. These shares have traded in a range between $1.13 to $3.50 in the last 52 weeks. The 50-day moving average is $1.61 and the 200-day moving average is $2.06. NVAX is estimated to lose about 21 cents per share in 2011 and post a loss of about 18 cents per share for 2012. In the product development pipeline, Novavax has candidates for infectious diseases such as pandemic influenza, seasonal influenza, shingles, and more. Wedbush has a $6 target and a outperform rating for NVAX shares. See that here.

Zalicus, Inc., (ZLCS) is trading around $1.24. Zalicus is a biopharmaceutical company based in Massachusetts. This company has a product pipeline which includes treatments for pain and inflammatory diseases, rheumatoid arthritis, acne, and more. These shares have traded in a range between 82 cents to $3.21 in the last 52 weeks. The 50-day moving average is $1.20 and the 200-day moving average is $2.02. The book value is stated at 64 cents per share. Oppenheimer has set a $3 price target and buy rating on ZLCS shares. See that here.

Alimera Sciences (NASDAQ:ALIM) is trading around $7.39. Alimera is a biotechnology company based in Georgia. These shares have traded in a range between $6.40 to $12.70 in the last 52 weeks. The 50-day moving average is $7.46 and the 200-day moving average is $7.99. ALIM is estimated to lose about 75 cents per share in 2011 and move to a profit of about 19 cents for 2012. This company has a proposed treatment for diabetic macular edema called "Iluvien". This treatment is currently under review by the U.S. FDA and with 7 European health authorities. Alimera also has other key products to treat macular degeneration in the pipeline. Oppenheimer has set a $14 price target for ALIM shares. See that here.

YM BioSciences, Inc. (YMI) is trading around $1.72. YMI is a biotechnology company based in Canada. These shares have traded in a range between $1.46 to $3.78 in the last 52 weeks. The 50-day moving average is $1.82 and the 200-day moving average is $2.45. YMI is estimated to lose about 68 cents per share in 2011, and a loss of about 89 cents per share for 2012. In the product development pipeline, YMI is working on treatments for myelofibrosis, lung cancer, and more. Collins Stewart has set a buy rating and a $4 price target. See that here.

The data is sourced from Yahoo Finance. 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 informational purposes only.

Source: 6 Biotech Stocks Analysts Expect To Double In 2012