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One of the biggest concerns investors have about biotech companies is whether the firm has sufficient liquidity to continue operations. Because it takes years to bring a drug to market, many publicly traded biotech firms do not yet produce self-sustaining revenues.

With this in mind, we ran a screen on the biotech industry for stocks with consistently increasing liquidity, measured by the current ratio (current assets/current liabilities) increasing over the last four years.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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.

Do you think these companies are in a strong operational position? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Immunogen Inc. (IMGN): Engages in the research and development of antibody-based anticancer therapeutics in the United States. Market cap of $916.52M. Current Ratio increased from 5.39 to 6.91 during the first time interval (12 months ending 2009-06-30 vs. 12 months ending 2008-06-30). For the second time interval, the Current Ratio increased from 6.91 to 8.47 (12 months ending 2010-06-30 vs. 12 months ending 2009-06-30). And for the final time interval, the Current Ratio increased from 8.47 to 13.83 (12 months ending 2011-06-30 vs. 12 months ending 2010-06-30). The stock is a short squeeze candidate, with a short float at 8.85% (equivalent to 9.54 days of average volume). The stock has gained 23.86% over the last year.

2. VIVUS Inc. (VVUS): Engages in the development and commercialization of therapeutic products for underserved markets in the United States. Market cap of $915.46M. Current Ratio increased from 1.89 to 3.11 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, the Current Ratio increased from 3.11 to 9.92 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, the Current Ratio increased from 9.92 to 11.73 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock is a short squeeze candidate, with a short float at 18.66% (equivalent to 12.08 days of average volume). The stock has gained 5.64% over the last year.

3. Micromet, Inc. (MITI): Engages in the discovery, development, and commercialization of antibodies for the treatment of cancer, inflammation, and autoimmune diseases. Market cap of $635.21M. Current Ratio increased from 1.85 to 2.19 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, the Current Ratio increased from 2.19 to 2.29 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, the Current Ratio increased from 2.29 to 4.91 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock is a short squeeze candidate, with a short float at 8.71% (equivalent to 12.35 days of average volume). The stock has had a good month, gaining 21.91%.

4. QLT Inc. (QLTI): Engages in the development and commercialization of therapies for the eye. Market cap of $338.61M. Current Ratio increased from 1.15 to 2.91 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, the Current Ratio increased from 2.91 to 19.82 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, the Current Ratio increased from 19.82 to 20.43 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has lost 0.15% over the last year.

5. Oncothyreon Inc (ONTY): Focuses on the development of therapeutic products for the treatment of cancer. Market cap of $329.06M. Current Ratio increased from 2.8 to 5.82 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, the Current Ratio increased from 5.82 to 16.12 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, the Current Ratio increased from 16.12 to 16.17 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock is a short squeeze candidate, with a short float at 24.19% (equivalent to 16.33 days of average volume). The stock has gained 123.48% over the last year.

6. Enzon Pharmaceuticals Inc. (ENZN): Engages in the research and development of therapeutics for cancer patients with unmet medical needs. Market cap of $328.37M. Current Ratio increased from 2.67 to 4.92 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, the Current Ratio increased from 4.92 to 5.81 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, the Current Ratio increased from 5.81 to 23.63 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock is a short squeeze candidate, with a short float at 14.04% (equivalent to 24.3 days of average volume). The stock has lost 44.31% over the last year.

Accounting data sourced from Google Finance; all other data sourced from Finviz.

Source: 6 Biotech Stocks With Consistently Rising Liquidity