Even the biotech bulls bailed today on the double whammy of concern about Europe’s debt crisis and the S&P echoing the Tea Party refrain about the U.S. budget deficit and need for fiscal reform. As of mid-day trading both the S&P 500 and the NASDAQ is down are down 1.5% . Biotechnology stocks, up over 10% YTD and cruising along last week tracked those losses with some high fliers down well over 2%: Ariad (ARIA), Cubist (CBST), Exelixis (EXEL) ,Seattle Genetics (SGEN) and Viropharma(VPHM). Viropharma was down over 9% as the US District Court dismissed a motion by the Company challenging the FDA’s criteria for bioequivalence with regard to evaluating generic drugs. The stock traded up 3 pts over five days expecting a more favorable outcome for the Company.
Many large cap drug and biotech stocks were more stable today down less than 1%.
The Rayno Life Science Portfolio was down 1.3% with bigger losses for Alexion (ALXN), Gilead (GILD), Neogen (NEOG), ,Qiagen (QGEN),and Viropharma (VPHM). On April 12 we recommended that investors raise cash from big winners.
The amazing biotech story of the day is Amarin (AMRN $17) up 94% on positive data from their Phase 3 trial for AMR 101 drug for treatment of high triglycerides. Triglyceride levels were reduced 21.5% and LDL-C (bad cholesterol)levels were reduced as well.AMR 101 is prescription -grade omega-3 fatty acid comprising not less than 96% ultra pure icosapent ethyl(ethyl-EPA).
Amarin (AMRN) stock now has a market cap over $2B and negative Stockholder Equity of $202M as of December 31. Revenues are nil. The stock traded under $2 just 12 months ago.Major holders of the stocks as of Dec 31 are Abingworth LLP of the UK, Fidelity and Orbimed Advisors. Fidelity and their mutual funds have become much bigger players in biotech stocks over the past 24 months.