Speculation in small cap biopharmaceutical stocks has peaked and we urged weeks ago to raise cash positions to 10-15%. The ASCO “sell on the news effect” has continued today with some high fliers off significantly:
Exelixis (EXEL $8.95) is off 18% after the Company reported over the weekend six deaths(1% of patients treated) in a clinical trial with drug carbozantinib for treatment of solid tumors. However the drug did demonstrate broad clinical activity in multiple tumor types.
GenProbe (GPRO $72.25) off 11.72% on news that Novartis (NVS) its current strategic partner may be the only bidder left for the Company. We urged profit taking in GPRO when the stock reached 80.
United Therapeutics(UTHR $59) off 6% on a cool response from their Phase III clinical trial data release on their oral pulmonary hypertension drug Treprostinil. The drug met its primary end point.
The Rayno Life Science Portfolio is off 1.6% today and the highs have been reached in many of the more speculative life science stocks in early May.
The Walls Street Journal headlined today,the application of genetic information to personalize therapy for cancer patients. Testing patients for specific genetic pathways in tumors called biomarkers enable more targeted therapy.
We have written about this subject extensively beginning with the BIO Meeting in 2010.