2015 All-America Research Team: Biotechnology/Large-Cap, No. 1: Mark Schoenebaum
This year the broad Biotechnology category is split into Large-Cap and Mid- & Small-Cap sectors, and he captures first place on both rosters.
First-Place Appearances: 11
Total Appearances: 11
Analyst Debut: 2005
In 2005, Mark Schoenebaum earned his first appearance on Institutional Investor’s All-America Research Team, debuting as the No. 1 analyst covering biotechnology shares. Despite changing firms in June 2010 — he moved from Deutsche Bank Securities to ISI Group, which Evercore Partners acquired last October — he has retained that position throughout. This year the broad Biotechnology category is split into Large-Cap and Mid- & Small-Cap sectors, and he captures first place on both rosters. The 42-year-old Hall of Fame researcher also claims his third consecutive top finish on the Pharmaceuticals/Major lineup, raising his total number of appearances at No. 1 to 15 and making Schoenebaum the sole researcher regarded by the buy side as the best at reporting on three categories. Clients readily declare their reasons for repeatedly ranking him as the best. “I met Mark on his very first sell-side analyst road show,” one fund manager recalls. “His strong enthusiasm for research, client service and performing deep due diligence has only grown.” Reciting the analyst’s attributes, a second backer describes him as “just an all around classy guy who doesn’t take himself too seriously. Very helpful with day-to day information and pressing issues in the space. Owns up to mistakes. Pounds the table when he has conviction. Excellent valuation work. Awesome survey work.” Schoenebaum tracks five large-cap U.S. biotech names and notes that this sector has performed well in 2015. Indeed, as of mid-September the S&P Biotechnology Select Industry Index was up 28 percent and ahead of the broad market by 32.9 percentage points. Although most of the larger names have posted double-digit gains, that performance is already easing, he cautions, as a result of slower catalyst flow in the second half. Still, one company that retains the researcher’s enthusiastic endorsement is long-standing favorite Gilead Sciences, which primarily develops treatments for HIV/AIDS, as well as life-threatening cardiovascular and respiratory conditions and liver disease. He likes the Foster City, California–based drugmaker’s “fantastic management team and reasonable valuation.” Nonetheless, to demonstrate to investors that it can continue to grow, Gilead should complete another acquisition, Schoenebaum reasons, and he is confident that the executives will deliver. “I believe they will use their money wisely,” he says. The shares were trading at $108.44 in mid-September, up 15.9 percent for the year to date, and he maintains a price objective of $115. “Mark is one of the most thorough, knowledgeable and reachable analysts,” a third supporter affirms. “His hard work is clearly evident in his published works, corporate outreach and investor attention.”