The biotech meltdown that started in late February was an indiscriminate killer. The top mega-cap sector leaders were shot down in flames along with small cap names that have yet to make a dime. The great thing for biotech investors, especially those with a long-term horizon, is some top names with outstanding potential were placed right on a platter for opportunistic buyers. In a new research report, the team at Jefferies highlighted three top names that were taken to the woodshed that may need to be bought now.

Auxilium Pharmaceuticals Inc. (NASDAQ: AUXL) has been cut in half since early March and is down 28% since management revised guidance for 2014. Revenue guidance was cut by $70 million to $380 million to $420 million, primarily reflecting lower-than-anticipated Testim sales. Testim is the company’s drug that helps raise testosterone levels in men. However, given the already pessimistic outlook for Testim, which the Jefferies team had previously estimated to decline 25%, they were surprised the stock did not rebound on prospects for Xiaflex for Peyronie’s, where the company highlighted that an additional 1,546 patients have applied for reimbursement help through the Auxilium Advantage program. The Jefferies team rates the stock at Buy with a price target of $34. The Thomson/First Call consensus target is $27.08. Auxilium closed Wednesday at $19.58 a share.

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Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) may be the home run stock aggressive traders dream of. The Jefferies analysts point out that not only is the stock trading close to cash, with $2.33 per share on the balance sheet, the stock is down a staggering 24% just since the start of the second quarter. Plain and simple, the Jefferies analysts see Rigel as perhaps one of the best small-cap opportunities for longer-term investors. They point out that with one of the most de-risked Phase 3 assets in biotech, a huge safety database from the prior rheumatoid arthritis development program, a validated $700 million or larger market opportunity, and growing at 20% or more year over year, everything may line up for an out-of-the-park stock. The Jefferies price target for the stock, which is rated a Buy, is a gigantic $10. The consensus on Wall Street is $6. Rigel closed Wednesday at $2.91. Investors would be looking at an incredible 240% gain if the stock hits the Jefferies target.

Seattle Genetics Inc. (NASDAQ: SGEN) was another name that was absolutely demolished in the biotech sell-off. The stock was down 11% after the company reported earnings recently, when it indicated that some trial data could be modified or postponed. Specifically, the company warned investors that it is likely to change the trial design for the ongoing Echelon-1 (E-1) and Echelon-2 (E-2) trials of Adcetris plus AVD for Hodgkin lymphoma and Adcetris plus CHP newly diagnosed T-cell lymphoma, to potentially allow earlier looks at the data. The Jefferies analysts think that the uncertainty surrounding the changes has weighed heavily on the stock. They also think that the trials may hold data related to efficacy that is much better than expected. Investors should watch for data in the fourth quarter of this year, which based on physician feedback, the analysts think could be better than expected. Jefferies has a $53 price target for the stock, which rated a Buy. The consensus estimate is at $45.15. The stock closed Wednesday at $35.96.

One thing is for sure, these recommendations are only suitable for extremely aggressive accounts with a high tolerance for risk and volatility. With that disclaimer aside, the Jefferies stocks to buy could bring huge gains for investors that understand biotech investing. None of the scenarios that are seen as catalysts will play out tomorrow, so a patient view needs to be taken.

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