Sell On ASCO News Due to High Expectations?

Large Cap Drugs Outperform Biotechs

As we move through the first day of ASCO and much anticipated clinical developments the market should not be surprised that large cap drug stocks are also major biotech stocks:

Bristol Myers (BMY $47.59) a highly recommended stock, soared again 3.43% on more news about Yervoy (ipilimumab) in combination with nivolimub in a Phase 1 trial that had a 53% response rate.

Merck (MRK $48.45) soared 3.75% on interim data for its anti-PD-1 antibody  Lambrolizumab in patients with advanced melanoma.The Merck drug shrunk tumors in 38% of patients.

Significant action among biotech stocks:

Biomarin (BMRN) was off 4.6% with good results on a cancer drug showing the risk of high ASCO expectations even with good news in a frothy market.

Celldex Therapeutics (CLDX $13.44) up 5.12% with good volume of 3M on no ASCO news but a speculative player with a good cancer drug pipeline in immunotherapies. Celldex has clinical stage products for glioblastoma, breast cancer and leukemias.

Daily Double One we missed: Clovis Oncology (CLVS $74.59). Phase 1 results for NSCLC boosts stock 38 pts! Clovis announced ongoing Phase 1/2 Results for BRAC-mutant ovarian cancer. 89% clinical benefit rate.

Onyx Pharamceuticals ( ONXX $93.16) was off 2.4% despite favorable Phase 3 data for thyroid cancer.

Seattle Genetics (SGEN) , a Rayno focus stock, was up 2.2% on a highlighting of ADC collaborator programs,

As noted in an earlier post today most biopharma stocks sold off today in profit taking as the sector is up 30% YTD and ASCO News is much anticipated. The sector was down more than 3% at 12 EDT before a steady recovery to being down 1%, helped by a positive market overall.

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