The ASCO Rally for Biotech Stocks is On: Now We Need to Consolidate Recent Gains Next Week

Pre-ASCO rally-Three Weeks of gains= 8-15%

Every year the ASCO Meeting excites investors because of clinical data being presented on a huge pipeline of oncology products. High expectations have already delivered an ASCO rally so now can the actual clinical data support these gains? The healthcare sector is unique in its ability to provide dividends and growth such as the big pharma stocks but since last September drug pricing concerns from election politics have curbed investor enthusiasm.

We have provided several ideas for potential trading gains from an ASCO rally. Among the winners over the last month from our core portfolio with a strong oncology focus are :

Abbvie (ABBV) up 4.27%

bluebird bio (BLUE) up 16.28%

Bristol-Myers Squibb (BMY) up 2.45%

Roche Holding (RHHBY) up 7.7%

And we have mentioned these oncology focused companies recently that will present at ASCO that have already made good moves over four weeks:

Alnylam Pharmaceuticals (ALNY) up 19.5%

Array Biopharma (ARRY) up 25.9%

Ariad Pharmaceuticals (ARIA) up 33.4%

Foundation Medicine (FMI) up 23.6%

Juno Therapeutics (JUNO) up 16.2%

Kite Pharma (KITE) up 18.9%

Foundation Medicine (FMI) and Roche (RHHBY) are developing the so-called “liquid biopsy” tests that can test a patient’s blood for DNA fragments from tumors. And as we reported in January Illumina (ILMN) formed a Company called Grail to focus on early cancer detection from DNA testing in blood.

The biotech rally overall is up 8.7% by the IBB and 15.14% by the more volatile XBI that includes more of the smaller cap biopharmas. Here is our last review of large cap biopharmaceuticals near the 2016 sector bottom  in mid -February.

Updates on ASCO related companies will be provided at the end of the week.

Disclosure: long ABBV, ARRY, BMY,BLUE, FMI, RHHBY.

IBB iShares Nasdaq Biotechnology ETF daily Stock Chart

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