Biotech had a Great October Boosted by Large Cap Biopharma Leader…Update-1 AMRN, REGN

Update-1 11/5 2p EST IBB flat, NAZ up 0.185, earnings from AMRN and REGN.

• Amarin down 3.5% to $16.83 on earnings but bulls are waiting for label expansion. Q3 Revenues are $112.4 M up 103%, increased prescriptions for Vascepa with a 12/28/19 PADUFA date.
• Regeneron (REGN) up 8.25% to $336.60 on earnings and eczema drug Dupixent strength up 141% to  $633 M and share buyback;.Q3 revenues up 23% to $2.05B.earnings beat with GAAP diluted EPS of $5.86. Eylea Q3 sales rose 14% to $1.92B.

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Update at close: large caps mixed today; ABBV continues to move up 1.5% from Oct bottom; GILD inched up; stock to watch is REGN with earnings tomorrow.

Earnings for Q3 on Amarin (AMRN) tomorrow; consensus is $110M REVS with an EPS OF (0.04.)

Large Cap Biopharma Were Leaders in October-What’s Next?

Large Cap Biopharmaceuticals as of 11/1/19-Financial Data below (analysis to follow)

Portfolios Can Be Balanced with the XBI (SPDR S&P Biotech ETF) Up 16.6% YTD

We thought early October was a good time to add healthcare and biopharma to your portfolio. Technicals rallied off the bottom and initial earnings reports looked good and were subsequently confirmed in later reports. Biotech almost hit bear market indicators on 10/1 weighed down by healthcare providers (IHF) among the worse sectors in 2019. YTD comparisons of overall performance get tricky in Q4 because of the horrendous 2018 downdraft.(below is a weekly chart for 2018/19). Note highs for the IBB in October 2018.

Our top picks were ABBV, BMY/CELG, MRK and RHHBY (not shown) and XBI. And we recently bought ALXN.

Note that the former high flier Regeneron (REGN) is the worst performer YTD but reports tomorrow so if you believe in “bargain hunting” that may be the trade for you.