Biotech Bull Market Rolls Merrily Along- Funds Are the Engine

order Pregabalin online uk enter Bullish Mentality Drives Usual MO-vers: PCYC, MDVN, REGN, SGEN 

where to buy prednisone in canada It is hard to add biotech stocks to your portfolio at these elevated levels but big players like Fidelity, Cap World, JPMorgan, T.Rowe Price and selected hedge funds- Orbimed, Baker Bros, etc can drive their holdings up more on any good news. Case in point is Medivation (MDVN)  up 4% to new highs on news that JNJ’s drug Zytiga sales (Q4 Sales $264M) for prostate cancer may have been slowed due to competition from Medivation’s drug Xtandi.

  • Many biotech stocks including some in the Rayno Life Science Portfolio (GILD,REGN) are driven by momentum.
  • Metrics do not matter for the high fliers because PEs and P/S are not useful during the hypergrowth phase (MDVN,REGN ).
  • A strong NASDAQ as well as related indices and ETFs (QQQ) create more biotech buying.
  • Funds with huge buying power like Fidelity can buy more of  their favorite stocks especially when retail investors get an appetite for the biotechnology sector.

A quick review of selected best performing large cap biopharmaceutical stocks shows big holdings (as of 9/30/12) by the major players:

Biogen Idec (BIIB) up  22.6% 1 yr.  22.8M sh held by Fidelity

Biomarin (BMRN) up 56.7% 1 yr.  13.7M held by Fidelity

Celgene (CELG) up 33.9% 1 yr.  12.8M shares held by Cap World

Onyx (ONXX) up 86% 1 yr. 8.4M shares held by Fidelity

Pharmacyclics (PCYC) up 314% 1 yr. 11M shares held by Baker Bros.

Regeneron (REGN) up 123% 10.8M shares held by Fidelity

The ETF FBT  hit new highs yesterday:

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