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A company's owners (or, shareholders) have very different goals than company management. Specifically, a company's owners seek to maximize the value of the company, while company management often wishes to maximize personal wealth. Corporate governance policies mitigate these differences and protect shareholder interests, but some companies have stronger policies than others.

Companies with stronger corporate governance policies are viewed as safer investments to shareholders over the long term. Institutional Shareholder Services (ISS) gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on the biotechnology industry for stocks with "low concern" ratings on at least three of the four corporate governance ratings from ISS.

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.

Do you think these companies are being run well? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Market cap of $58.20B. According to ISS, the company has 'low concern' in all corporate governance categories. Exhibiting strong upside momentum--currently trading 7.49% above its SMA20, 14.03% above its SMA50, and 18.7% above its SMA200. The stock has had a good month, gaining 13.33%.

2. Incyte Corporation (NASDAQ:INCY): Focuses on the discovery and development of proprietary small molecule drugs for hematologic and oncology indications, and inflammatory and autoimmune diseases. Market cap of $2.04B. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Compensation Risk category. This is a risky stock that is significantly more volatile than the overall market (beta = 2.2). The stock is a short squeeze candidate, with a short float at 15.64% (equivalent to 9.44 days of average volume). The stock has had a couple of great days, gaining 9.4% over the last week.

3. Human Genome Sciences Inc. (HGSI): Operates as a biopharmaceutical company. Market cap of $1.88B. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Compensation Risk category. The stock has recently rebounded, and is currently trading 24.29% above its SMA20 and 14.42% above its SMA50. However, the stock still trades 47.85% below its SMA200. The stock has had a couple of great days, gaining 34.47% over the last week.

4. Charles River Laboratories International, Inc. (NYSE:CRL): Provides research models and laboratory animal support expertise to help its global partners advance their research and drug development efforts. Market cap of $1.55B. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Compensation Risk category. The stock has had a couple of great days, gaining 14.42% over the last week.

5. Idenix Pharmaceuticals Inc. (NASDAQ:IDIX): Engages in the discovery and development of drugs for the treatment of human viral and other infectious diseases in the United States and Europe. Market cap of $1.38B. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Compensation Risk category. Exhibiting strong upside momentum--currently trading 57.47% above its SMA20, 70.85% above its SMA50, and 124.42% above its SMA200. The stock has had a couple of great days, gaining 85.25% over the last week.

6. Immunogen Inc. (NASDAQ:IMGN): Engages in the research and development of antibody-based anticancer therapeutics in the United States. Market cap of $901.99M. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Compensation Risk category. The stock is a short squeeze candidate, with a short float at 9.51% (equivalent to 13.13 days of average volume). The stock has gained 24.6% over the last year.

7. PDL BioPharma, Inc. (NASDAQ:PDLI): Engages in the management of antibody humanization patents and royalty assets, which consist of Queen et al. Market cap of $859.95M. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Shareholder Rights Risk category. The stock is a short squeeze candidate, with a short float at 11.48% (equivalent to 7.78 days of average volume). The stock has gained 22.27% over the last year.

8. Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN): Engages in the discovery, development, and commercialization of treatments for infectious diseases. Market cap of $813.17M. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Shareholder Rights Risk category. The stock is a short squeeze candidate, with a short float at 9.61% (equivalent to 6.21 days of average volume). The stock has had a couple of great days, gaining 51.23% over the last week.

9. NPS Pharmaceuticals, Inc. (NASDAQ:NPSP): Engages in the development specialty therapeutics for gastrointestinal and endocrine disorders. Market cap of $585.34M. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Compensation Risk category. The stock has lost 12.26% over the last year.

10. Chelsea Therapeutics International Ltd. (NASDAQ:CHTP): A development stage pharmaceutical company, focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of various human diseases. Market cap of $316.67M. According to ISS, the company has 'low concern' in all corporate governance categories except for 'medium concern' in the Compensation Risk category. The stock is a short squeeze candidate, with a short float at 10.05% (equivalent to 13.55 days of average volume). The stock has lost 30.81% over the last year.

*Ratings sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 10 Biotech Stocks With Strong Corporate Governance