The technicals in the biotech market are looking a lot better but the damage from October was severe. The 10% correction from the Sep 21, 2009 peak is about over as long as the NASDAQ holds up. The IBB is at 75 today off its high of 84.
Good news from a number of companies have helped restore money flows to the biotech sector:
Human Genome (HGSI)
One of this year’s big winners from 45 cents to a recent high of 28 moved the past several days from 20 to 27 today based on continued good results on its Lupus drug Benlysta (see NYT Nov.2 article).
VRTX rallied 4 points from 34 to 38 to a two year high based on results of its 2x daily HCV drug Telaprevir.
Marketing approval will be filed in late 2010.
Gilead stock popped 5% over the past few days with release of data from two pivotal Phase III studies evaluating Viread as a first line therapy for chronic hepatitis B infection. The majority of patients sustained suppression of HBV DNA levels in the blood.
Biocryst rallied from 8 to 9.88 as they geared up its IV flu drug permavir for emeergency use by governments to combat H1N1 flu.
News drives biotech stocks and the sentiment has improved so for now it looks like an entry point for long term portfolio buys of large cap biotech stocks and selected mid-caps.
GILD and CEPH are in buying range. IBB also is basing in the 70-75 range.CBST and VPHM are buys in the model portfolio.Two weeks ago we recommended taking some profits on ILMN at 42 and buying speculative positions in HLCS and SQNM.