Risk is on today due to a weak dollar and that is usually good for Life Science stocks.MidCap biotechs are mainly green despite bad news from Amylin (AMLN) $11.35 down 44%, and partner Alkermes (ALKS) $10.91 down 24.75% a setback on their long- acting drug for diabetes called Bydureon which will require additional clinical trials.The FDA again denied approval for the drug and requested a QT study due to concern about heart arrthymia.
Diabetes and diet drugs are two clinical categories with higher risk in clinical trials.
The Spyder S&P Biotech ETF (XBI) was down 1.3% due to large 3%+ positions in Alkermes and Amylin.
Notable movers in the Rayno Life Science Portfolio today are:
Gilead (GILD)$38.75 up 5.4%, reported earnings and beat EPS estimates at $0.90 vs $0.87 due to better sales of core HIV drug products. The guidance for full year sales remain at $7.3B to $7.4B. The stock has been weak since April when the Company cut revenue estimates by $300M due to healthcare reform and currency adjustments. The 52 week high is $49.50 with the late August low at $31.73.The Company holds over $5B of cash with $5.9B of Shareholder Equity. Gilead is a good example of a growth stock that was over-owned, gets trashed due to guidance and becomes value 6 months later due to a strong balance sheet and strong market share.
SuperGen (SUPG) is up 8% to $2.46 volume 372k on no news.SUPG reports earnings on October 25.The Market Cap is $149M with Cash and investments over $100M. The stock is volatile with a 52 week range of $1.71-$3.80 despite being clearly in the value class .
Also in the Rayno Portfolio moving up over 2% today are : Abaxis (ABAX), Biomarin(BMRN), Exelixis (EXEL), NeoGen (NEOG) and Targacept (TRGT).