Biotech Stocks Fly Over Macro Flack: ALXN, ILMN, REGN, TMO

Rayno Life Science Focus Stocks Are Strong-TMO Added

Biopharmaceutical stocks continue their run today beginning with higher sales expectations for Regeneron(REGN $128) with their eye drug for macular degeneration.Regeneron raised expectation for Eyelea to $700-750 from $500-550.Total revenue for Q2 was $304.4 with a profit up to $76.7M or 70 cents a share. The stock is up 5.77% as of mid-day trading but there is distribution of stock on a volume of 2.6M shares. Regeneron was added to the Rayno Life Science Portfolio on 2/2/09 at a price of $17.5 a 7X return.

Another star in the Rayno Biopharmaceutical Portfolio is Alexion(ALXN $102.41) up 4.9% on a sales boost for Solaris to $274.7M compared to $185.7M in Q2 2011. Non-GAAP income was up 66% to $94.1M or 47 cents a share.

Other Rayno biopharmaceutical 2%+ movers today are Astex(ASTX $2.40), Biogen(BIIB $143), Cubist (CBST $41.48) and Optimer ($14.32). Biotech ETFs are up >1% IBB and XBI.

The tools and diagnostics sector shows some recovery from the Cepheid (CPHD) miss and we are looking for new ideas here. Our top pick for the longer term is Illumina(ILMN $42.3) up 2% today. Among the large cap integrated Tools/Dx companies ThermoFisher (TMO $53) is on a tear up 8% after raising estimates despite lower revenues.TMO is a good large cap value stock for a diversified life science portfolio. The Company is well managed and is moving aggressively into clinical diagnostics which is an excellent long term strategy.The forward PE is 9.3 with a P/S of 1.51.

 

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