Biotech stocks followed the market down today with the NASDAQ being down 1.8% and the S&P down 1.5% .
The biotech ETF’s tracked the market closely with the IBB down almost 2% and the XBI down 1.65%. The summer rally which gathered momentum with the acquisition of Medarex by Bristol on July 24 has given up about 6% of those gains.
The Rayno Life Science Portfolio which includes some diagnostic companies is still up 8.5% YTD even without re-weighting as recommended.The biggest winner in the Portfolio Targacept is up 2% today and over 500% YTD. Other big winners include Abaxis (ABAX), Illumina (ILMN), Inverness (IMA), Micromet (MITI), Regeneron (REGN), and United Therapeutics (UTHR). Look at support levels for various stocks around the broad based take-off prices of July 1 or an IBB price of 70.
Amgen received limited advisory panel committee approval yesterday for their new bone drug called denosumab (Dmab) which treats postmenopausal women with osteoporosis. The committee’s consensus was the injectable drug should only be used for a high risk subgroup, high risk for weak bones prone to fracture. Leerink Swann analysts retain their Outperform rating and said that even without the prevention indication the U.S. potential Dmab sales for postmenopausal osteoporosis (PMO) is $1B.An estimated 10 million women have osteoporosis in the U.S.(National Osteoporosis Foundation).
Amgen stock is down 3 pts over two days and is now around $60 up 9% YTD.

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