The March rally improved the performance of the Life Science sector in Q1 but trailed gains in the technology sector.
The S&P Healthcare Index lost 8.5% in Q1 compared to the S&P 500 loss of 11.7%. The S&P Technology Sector gained about 2% in 2009.
The Rayno Life Science Portfolio was down only 2% including gains in Genentech which was sold to Roche. This compared to IBB down 7% and XBI down 8.6%.Q1 winners in the Rayno portfolio were ABAX,BIIB,DNA,HOLX,ILMN, IMA,ISIS SGEN and TRGT.Losers were CBST,REGN,VPHM and several microcap stocks.
Some of the funds received from the $47B Genentech buyout are likely to flow back into the sector.
Looking forward an April 6 report from Leerink Swann highlighted the $1.1B Obama administration budget for studies of healthcare products’ comparative effectiveness research (CER). A 52 page report has been published by NIH.