Update after close 2/28/18
- Tape deteriorates at last hour of trading, a familiar pattern: IBB down 1.83%, QQQ down 0.64%, XBI down 1.88% for day.
- Biotechs still up YTD with XBI;FBT down 2.35% but still up 8.28% YTD.
- Celgene, Inc (CELG) sell-off continues down 9% to $87.12 on 27.87M share volume!
- Hard to find biotech stocks in the green.
- Energy and materials are worst sectors.
Sluggish Tape In Biotech at Mid-Resistance Levels
Bad News From Celgene (CELG) Hurts Sentiment Down 16% YTD
Technicals Look Weak with IBB 7% Off January Highs
Biotech stocks were weak again today exacerbated by still more bad news from Celgene (CELG) down over 8% on news that the FDA refused to review their Ozanimod product for relapsing Multiple Sclerosis. This does not look good for previous Celgene management and their 2015 acquisition of Receptos in July of 2015 for $7.2B. Peak annual sales at that time were forecasted at $4-6B hence a major product for the immune-inflammatory disease area.
Large caps were mixed but mid-caps looked better with several 1%+ winners
We downgraded the CELG stock for new buys but it remains a hold. We will update this post after the close today.
Disclosure Long CELG.