1. Gilead Sciences

GILD

Biotech giant Gilead, maker of 11 commercially available medicines for patients with life-threatening diseases, had a quiet but fruitful year. It has capitalized on the success of its most recently approved drug Atripla, a once-daily tablet for HIV patients, and its 2006 acquisition of pharmaceutical ingredient maker Raylo Chemicals. It's No. 1 on our list, but also one of the biggest gainers in the ranking: Last year, it was ranked 18th.

Morningstar says:
Rating:
Current stock price: $43.32
Fair value estimate: $45.00

Analyst comments:
"Gilead Sciences' focus on infectious disease has paid off in spades, and the firm's HIV franchise continues to dominate a growing, global market and drive impressive profitability. Although Gilead has 10 years until key patents begin to expire, management took a big step toward diversification with the $2.5 billion acquisition of Myogen in 2006." (Updated 10/20/08)