The world of biotech investing is always a difficult one. Often a binary event, such as a U.S. Food and Drug Administration (FDA) approval or a life-saving capital raise is the difference between not only success or failure, but survival. The biotech analysts at PropThink are trying to handicap the best and worst scenarios on the stocks they cover.

Here is a look at their current top stocks to buy and one to be wary of.

ResMed Inc. (NYSE: RMD) is a name they are somewhat negative on. The company recently filed a lawsuit alleging patent infringement on its popular sleep-disordered breathing products. The target, 3B Medical, is not taking the litigation lying down and is beginning an ad campaign to reveal the true cost of CPAP devices ResMed makes and sells. PropThink contends its high margins will not last forever, management has been selling and the stock may be fully valued. The Thomson/First Call estimate for the stock is $48. Investors are paid a 1.40% dividend.

Cubist Pharmaceuticals Inc. (NASDAQ: CBST) is a favorite stock to buy at PropThink. The analysts had predicted a positive outcome in the company’s ongoing dispute with Hospira Inc. (NYSE: HSP) and a U.S. District Court Judge did indeed rule in its favor. This event has a “clearing” effect on Cubist, as investors who are more interested in the pipeline had remained on the sidelines ahead of this binary legal event. Cubist’s lead candidate is CXA-201, a treatment for Gram-negative infections that Wall Street believes could be Cubist’s next blockbuster product. The consensus price target for this stock is $57.50.

Trius Therapeutics Inc. (NASDAQ: TSRX) is another company involved in antibiotics. Trius remains one of the best ideas in the small-cap biotechnology area, offering investors low development and regulatory risk with potential high investment returns over the next 12 to 18 months. More than one firm believes Trius is a takeover candidate, given the need for stronger antibiotics that will work against drug resistant superbugs. The consensus target for the stock is $12, which would represent a 40% move from current levels.

Keryx Biopharmaceuticals Inc. (NASDAQ: KERX) remains a top stock to buy at PropThink. The company presented additional details from its pivotal phase III study for Zerenex last Monday at the World Congress of Nephrology (WVN) last week. The additional phase III data for the phosphate binder continue to support what some consider to be a game-changing treatment with both phosphate-binding and significant anemia benefits for dialysis patients. The consensus price target for the stock is $14, which is almost a 100% move from current levels.

Endo Health Solutions Inc. (NASDAQ: ENDP) hit a new 52-week high last Friday. After revealing their official new strategy for moving forward, analysts are coming back around on the stock.The company said last week it is also considering a sell-off of their urological-service business HealthTronics and says it will evaluate other assets with an eye toward divestiture as well. The consensus price target is $37.50, which is below where it closed Friday.

BioMarin Pharmaceuticals Inc. (NASDAQ: BMRN) took a big hit in May when data on a new pipeline drug was mixed. Both PropThink and Jim Cramer think the sell-off was a huge overreaction and investors have a golden opportunity to enter this top stock to buy. BioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company’s product portfolio includes four approved products and multiple clinical and preclinical product candidates. The consensus estimate for the stock is $70.

Stemline Therapeutics Inc. (NASDAQ: STML) is a biopharmaceutical company that is developing cancer therapies targeting cancer stem cells. The company had a successful secondary offering in May that raised $60 million. Stemline now has $90 million in pro forma cash, compared to $20.9 million in operating expenses in 2012. The consensus price target for this exciting name is $22.

With a penchant for large-cap names with huge momentum and small-cap names on the verge of a big success, PropThink offers a good balance of biotech information and data. It is also important for us to mention that PropThink often holds a stock or option position in the stocks they offer positive research analysis on. Conversely, they may be short or buy put options on names they are negative on. Investors should remember that some of the highly speculative names may be totally unsuitable for conservative portfolios. With that caveat in place, some of the names also could lead to spectacular gains.

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