According to a Morgan Stanley report, large biotechnology companies may be able to offer good returns in the second half of 2006.

"Examining events on tap for the second half of 2006, we continue to see opportunities for positive risk-adjusted returns in selected large and small cap biotechnology stocks," said Steven Harr, a Morgan Stanley analyst.

Among Morgan Stanley's top picks were:

• MedImmune: Products include biopharmaceuticals for infectious diseases, oncology and immunology: Flumist®, Synagis®, Ethyol®, Cytogam®
• Genentech: Biopharma focusing on oncology, immunology, disorders of tissue growth and repair, including angiogenic disorders. CEO Arthur Levinson cited as top molecular millionaire. Latest from the pipeline: Lucentis, against neovascular age-related macular degenetration.
• Gilead Sciences: Develops biopharmaceuticals for the treatment of life-threatening infectious diseases such as HIV/AIDS, influenza, hepatitis, and severe fungal infections. Latest approved drug candidate: Atripla,a three-in-one tablet against HIV.
• and Celgene: Focuses on cancer and inflammatory disease therapeutics. Top products includeThalomid and Revlimid, both approved for the treatment of multiple myeloma, among others.

Read more about Morgan Stanley's report from the Forbes article.