With the market resuming full speed after the recent holiday, many investors are reviewing their portfolios for some final year-end changes in an attempt to grind out some 2015 gains. Historically, December is one of the strongest months for stocks, and adding some top new growth stock ideas now could help boost performance.

A new Jefferies research report focuses on some biotech and specialty pharmaceutical stocks that have had some headline and clinical issues muddy the waters. These stocks are more appropriate for aggressive growth accounts but could have some serious upside potential.

BioMarin Pharmaceuticals

This is one of Wall Street’s favorites, and recently announced earnings were outstanding. BioMarin Pharmaceuticals Inc. (NASDAQ: BMRN) develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. Its product portfolio includes five approved products and multiple clinical and preclinical product candidates.

Over the past decade, BioMarin has become one of the top orphan drug companies, and it looks poised to stay there. The company is expected to post around $875 million in revenue this year and possibly around $1.1 billion next year, following the approval of Vimizim, an enzyme replacement therapy for Morquio syndrome. BioMarin had raised its guidance for Vimizim to $200 million to $220 million from $170 million to $200 million.

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The company could have big readouts this year and expects continued solid performance from its marketed products. The recent FDA panel results for Drisapersen were considered negative by many on Wall Street, and the potential for FDA approval at the December 27 PDUFA meeting is a toss-up. Jefferies remains bullish as most of the subset data were consistent and there is a tremendous need for the drug, and the firm cites the fact that most of the panelists and patient representatives did not feel that the safety concerns outweighed the overall benefit.

The Jefferies price target for the stock is $165. The Thomson/First Call consensus target is $147.88. The stock closed on Tuesday at $97.93.

Horizon Pharma

This company has taken a massive hit since the summer, and we featured Jefferies’ initial call last weekend as one of the stocks with huge upside potential. Horizon Pharma PLC (NASDAQ: HZNP) is a specialty pharmaceutical company based in Ireland, and through its subsidiaries, develops and commercializes medicines for the treatment of arthritis, pain and inflammatory diseases.

The company’s best known products include Actimmune for reducing the frequency and severity of serious infections associated with chronic granulomatous disease, and Duexis, a proprietary tablet formulation for the relief of signs and symptoms of rheumatoid arthritis and osteoarthritis.

Jefferies views the company’s recent decision to drop the acquisition of Depomed due to a judge’s ruling as a positive, and the analysts think the company will pursue other merger and acquisitions. The firm also notes that Horizon has also been caught in the specialty pharmaceutical pricing controversy, despite its reiterated 2016 guidance.

Jefferies has a large $32 target price, but the consensus estimate is much higher at $38.67. The stock closed Tuesday at $21.30.

ImmunoGen

This small biotech stock also could have big upside potential. ImmunoGen Inc. (NASDAQ: IMGN) is a clinical-stage biotechnology company that develops targeted anticancer therapeutics using its proprietary ADC technology. Its lead product candidate, mirvetuximab soravtansine, is a potential treatment for FRa-positive ovarian cancer and other solid tumors. A number of major health care companies have licensed limited rights to use ImmunoGen’s ADC technology to develop anticancer therapies.

Jefferies notes that ImmunoGen recently partnered Kadcyla royalties in exchange for upfront cash, redoubled development and now has an asset in Mirvetuximab, which has shown robust response rates in early clinical data. The analysts estimate $525 million in U.S. sales alone for the ovarian cancer drug by 2028.

The Jefferies price target is $16, and the consensus target is $16.60. Shares closed Tuesday at $13.28.

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Sarepta Therapeutics

Shares of this top biopharmaceutical company also have been hit very hard this year, but they have rallied big recently. Sarepta Therapeutics Inc. (NASDAQ: SRPT) is focused on the discovery and development of unique RNA-targeted therapeutics for the treatment of rare, infectious and other diseases.

Sarepta is primarily focused on rapidly advancing the development of its potentially disease-modifying Duchenne muscular dystrophy (DMD) drug candidates, including its lead DMD product candidate, eteplirsen, designed to skip exon 51. Sarepta is also developing therapeutics for the treatment infectious diseases, such as drug-resistant bacteria and other rare human disease.

With an FDA showdown approaching for two companies, including Sarepta, that have drugs to treat DMD, many think that Sarepta has a clear advantage due to fewer side effects reported with its drug. Many analysts are bullish in front of the FDA panel and the PDUFA that is scheduled for the first quarter next year. Jefferies says last week’s FDA advisory committee ruling for the BioMarin product is very positive for the company, given the strong biomarker and safety data for Sarepta’s drug.

Jefferies has a Hold rating and a $38 price objective. The consensus price target is $46.75. The stock closed Tuesday at $36.92.

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These stocks all have big potential but also hold much larger risk than many companies. Only accounts that can take substantial movement to the downside in capital should consider owning them.

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