Biotechs Soar After Big Trump Drug Price Speech- Mid-Caps Should Outperform…Updates

order accutane uk http://theblindclub.com/?krigo=buy-orlistat-120-mg-without-prescription Update: 5/17…Mini-Rally Continues With Help From ASCO Abstracts

  • XBI hits $93.78 above April highs, up 5.32% over 5 days, 10.5% YTD.
  • IBB at April highs at $107.59, up 3.62% over 5 days, up 0.77% YTD
  • Many Mid-Caps are hot: BLUE, CRSP, EXEL, FOLD, LGND, LOXO. See our list below.
  • Gene editing stocks move up: CLLS, CRSP, EDIT,NTLA.
  • ABBV solid, REGN gets bids, Celgene(CELG) hits new 12 mo. lows down 23% YTD.
  • But FDA is pushing hard for generic competition.

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where to buy provigil online usa Biotechs Soar And Find Relief After Trump Big Speech

Look to MId-Caps for Momentum

Large Caps are Value Stocks

Gene Editing and Gene Therapy Provides New Theme

Biotechs soared Friday immediately after Trump’s much-anticipated  new drug plan speech which was going to address high drug prices and potentially bring more government intervention. The big concern was direct negotiation by HHS for Medicare drug prices but that did not happen. The Trump speech sounded ominous but lacked detailed action plans for the government  that could be implemented near term. Alex Azar the new HHS secretary and former Lilly Executive is scheduled to elaborate on the proposals that initially focused on “squeezing” PBMs like Express Scripts (ESRX) and CVS. Nonetheless tough talk along with geopolitics is likely to disrupt markets sometime in the future.

Biotech stocks and widely followed ETFs had one of their best days of the year on good volume. Many analysts felt short covering was a major factor in the rally but it brought back ETFs like the XBI up 2.96% above the SMA 50 level. Similarly the IBB was up 2.75% Friday’s action (5/11) augers well for a continuing rally for at least another week but not to new highs without news or deal catalysts. But we have defended the sell-off toward 2018 lows.

On 5/4 we suggested that the Mid-Caps were the sweet spot of the market because of M&A potential, clinical breakthrough news and revenue growth. AveXis (AVXS) is a good example purchased recently by Novartis (NVS) for $8B. Here is our updated list of well-known Mid-Caps with performance over the past 5 days and YTD. We are developing a portfolio model based on technicals with stocks that have been pre-screened for pipelines and financial metrics.

If you look at these volatile names you can appreciate why the FBT and XBI outperform the market in a bull market in despite recent weakness that tested 2018 lows.

Over the past week the top performers are: AGIO ARRY BLUE CLVS LOXO LGND NVCR.

Leaders YTD as of 5/11 close are: AGIO up 52%, ARNA up 32.4 %, CRSP up 124.6%, LGND up 30.1 %, NVCR up 48.5%, SRPT up 67%.

 

Disclosure long: ARRY and many others.

Company Ticker Price $ Revs $B MktCap %Perf Analyst
5 Day %
$B YTD 2018 Rating
Acadia Pharma ACAD 18.55 0.1249 1.87 -38.39 2 0
Agio Pharma AGIO 87.1 0.043 4.62 52.35 2.1 7.96
Alnylam ALNY 100.91 0.899 8.64 -20.6 2.2 3.6
Anaptys Bio ANAB 89.81 0.01 2.06 -10.5 1.7 0.72
ArenaPharma ARNA 44.91 0.021 2.09 32.4 1.8 5.44
Array Biopharma ARRY 15.04 0.139 17.5 5.39 1.6 10.1
AveXis AVXS 217 0 8 96.2 2.8
acquired
BlueBird Bio BLUE 186.4 0.034 7.93 4.66 2.2 7.06
Blueprint Med BPMC 81.51 0.021 3.39 8 1.5 3.93
Clovis Oncology CLVS 51.19 0.055 3.05 -24.7 2 19.57
CRISPR Ther CRSP 52.73 0.062 2.19 124.6 2.1 1.74
Exelixis EXEL 19.55 0.452 6.43 -35.7 1.9 -12
Incyte INCY 66.45 1.54 13.22 -29.8 2.2 6.95
Ionis IONS 45.95 0.507 5.15 -8.65 2.8 4.41
Amicus Ther FOLD 14.01 0.0369 2.53 -2.64 1.7 -1.68
Foundation Med FMI 75.95 0.153 2.45 11.36 2.5 7.2
GW Pharma GWPH 145.97 0.016 3.87 10.6 2.3 3.66
Ligand Pharma LGND 178.2 0.141 3.14 30.1 2.2 14.7
Loxo Oncology LOXO 139.45 0.02 3.67 66 1.3 16.5
Neurocrine Bio NBIX 90.4 0.161 6.91 16.5 1.6 9
Nektar Therap NKTR 79.44 0.308 13.15 33 1.7 2.9
NovoCure NVCR 30 0.177 2.26 48.51 1.6 7.14
Seattle Genetics SGEN 56.92 0.513 7.97 6.39 2.3 2.58
Serepta SRPT 92.89 0.154 5.03 67 1.8 3.5
Tesaro TSRO 49.94 0.223 2.618 -39.7 2 0
First Trust Arca FBT 137.4 10.3 4
iSharesBIO IBB 106.58 0.18 3.47
NASDAQ-100 QQQ 169.46 8.8 1.98
SPDR S&P XBI 91.65 7.99 4.29
HC SPDR XLV 83.03 2.63 0.42
Data from FinViz
and Yahoo

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