Biotech sell-off continues

We commented on Tuesday about the broad selling of all biotech stocks large and small and this trend continues through today. AMGN shares are down this week despite earnings EPS of $1.49 beating estimates of $1.27 as regulatory concerns about its experimental osteoporosis drug weighed on investor.Despite bullish analyst support and a forecast of approval as early as Q1 2010,the stock is off 6% from Monday’s high of 60 which is the January 2009 price. Celgene also beat estimates but sold off following a slight pop after earnings.
Our index of 35 mid-cap biotechs is down another 1.5% today as of 12:40 EDT with only two winners. The biotech sector hit a 2009 high around Sep 21 and but has been weak since that time.This week both the IBB and XBI are down about 4%.
We are close to a bottom in CEPH and GILD both of which are long term buying opportunities.

No comments yet.

Leave a Reply