Seems a Bit Frothy
Large and mid-cap biopharmaceutical stocks continued to surge today with the bellwether ETF IBB ($114) hitting one year highs of $114.15 today. Many of our recent focus picks also continue to roll ahead:
Astex (ASTX $2.18) up 4.8%, Gilead (GILD $47.40) up 2.4%,ImmunoGen (IMGN $12.75) up 3.3%, Seattle Genetics (SGEN $18) up 2.8%, ViroPharma (VPHM $30.51) up 3.53%.
The biopharmaceutical sector may be taking its cue from recent buyouts of Pharmasset (VRUS) by Gilead and Inhibitex (INHX $24.85) by Bristol Myers and betting on the next play. The Medivation (MDVN $54) drug failed in a Phase 3 Alzheimer drug study but attention has focused on their prostate drug MDV3100 which showed favorable clinical results in November with a survival benefit of of 4.8 months and a 37% reduction in death rate. The market cap of Medivation is now $1.9B with no revenues.