The biotech sector sell-off (IBB at $170) continues today despite an effort to rally in the opening (IBB at $178). The biotech sector now tracks the overall market and is no longer immune to macro issues and economic events. Market concerns this week are the volatility and mini-crash of the Nikkei/Yen carry trade, ranting on about i rates going up and “tapering” by the FED, weakness in the financials an important market leader and overall weakness in economic indicators. The biotech sector correction is now more than 5% over 5 days and 9% off the May “bubblet” top. The best biotech mutual fund Fidelity’s Five Star (FBIOX $142) is up 29,5% YTD! So investors in biotech are having a great year so we suspect many investors are booking some cash.
Our data base of more than 60 mid-cap companies shows a loss of more than 2% with only a few green stocks and two that interest us are Alkermes (ALKS $29.71) on our focus list and Trius Therapeutics (TSRX $7.85) currently under review. The Rayno Biopharma Portfolio is all red but you should be looking to add Gilead (GILD $50.08) off 4.28%, shares when it stabilizes in the $45-50 range.
ASCO News is obviously not driving biotech stocks today. Celgene (CELG $113) announced FDA approval of an sNDA for Revlimid for mantle cell lymphoma but the stock is off 4%.
Yesterday at ASCO the Gynecology Oncology Group (GOG) presented an Abstract that showed that Bevacizumab (Avastin-Roche/Genentech) is the first agent to significantly improve survival in recurring cervical cancer.
While it is too early to summarize the cancer drug winners post-ASCO, the companies that appear to have had the most impact are : BristolMyers (BMY), Clovis Oncology (CLVS), Gilead (GILD), Merck (MRK), and Roche (RHHBY).