Is it still possible for companies to be recognized for delivering results? The answer is a resounding "yes."

In a year where the bear has returned, Elan Corp. PLC (ELN) looks like it could quite possibly turn into one of the best-performing stocks for 2008.

Shares of the Irish drug-maker shot higher on the heels of positive preliminary drug trial results for bapineuzumab, ELN's Alzheimer's drug which is being developed in conjunction with U.S. pharmaceutical giant Wyeth (WYE). Investors might remember ELN made some waves in the stock market a few years ago, with the successful launch if its Multiple Sclerosis drug, Tysabri.

Helping matters of course, were poor results from Elan's key competitor, Myriad Genetics Inc. (MYGN) who dropped out of the Alzheimers race by ending development of the drug Flurizan after it proved no better than placebo in a late-stage trial.

In the last year alone, shares of ELN have doubled from $16 per share to over $35 per share today. Clearly, offering a product that sells in a huge market sphere–without one of its direct competitors–deserves a higher valuation.

However, the question going forward is can ELN continue to deliver the goods?

Elan (ELN) Is an Undervalued Buy

Keep in mind, the product is not on the market yet, and late-stage testing may not materialize as expected. And if this happens, yes, ELN will trade lower.

But, given the horrible sentiment in the stock market, I'm betting that ELN is quite undervalued. In fact, if the drugmaker can deliver the goods, we might just be looking at a double or more for from current elevated levels. If the market allowed for any kind of speculation, that result may already be here. It's not, and therefore, there is still time to profit from ELN. (For a list of other stocks to buy in this turbulent market, you'll want to read, "Top Stocks for a Topsy Turvy Market.")

As a leading biotechnology drug manufacturer with nearly $1 billion in sales worldwide, ELN's $16 billion market capitalization indicates a rich valuation. Add that to its strong pipeline of drugs under development, and ELN is well-positioned to grow in valuation and beyond.

That being said, investors need to tread carefully since bapineuzumab still needs to pass the demanding Phase Three trial requirements before Elan Corp. can successfully bring the drug to market.

The drive to produce, innovate and cure is so strong in biotech that knocking one out of the park is not only possible, but probable. Just ask Michael Murphy, editor of New World Investor! Michael Murphy focuses solely on the next big winners in the biosphere that offer solid profits innovative pharmaceuticals.