Update-1 10/22. Some follow through in biotech rally but sold off mirroring the NASDAQ about 2p,Maybe BREXIT related but we’ll see later this week after many earnings reports.
- Large caps have been leading and although the IBB was up 1.66% it sold off from $107 level $106. Biogen (BIIB) helped the indices up 26% to $281.87 but off highs of the day of $318. Biogen announced it will resurrect its Alzheimer’s drug after a detailed analysis of previous clinical data. The Company plans to submit a Biologics License Application by early 2020.More on Biogen later this week. Overall this should be viewed as a positive development so we can learn more about this promising drug and its mechanism. (no position in BIIB).
The XBI was up 0.81 % but like the IBB sold off from daily highs.Although many stocks were up today I have to say that trading was mixed maybe due to macro events.
Merck (MRK) was down 3.8% on clinical news from Bristol Myers (BMY) that its lung cancer drug combined with chemo met its endpoint of superior overall survival. BMY stock was up 2.29%.(long both BMY and MRK)
At BIO Investor Forum this week where many early stage companies present and I hope to gain insight into Public Policy Outlook and new gene therapy treatments for cancer.
Bullish Trends in Biotech Today
XBI up 1.83%.
Rally holds through close but we need a strong week to confirm.
FBT also up 1.41%. NASDAQ up 0.9%.Gene therapy stocks have a green screen day.
NASDAQ up 0.83%.
Last week we started adding healthcare and biotech stocks to our portfolio based on technicals, valuations and seasonality including earnings. Here is our last post “Strong Earnings “which broke down the subsectors most of which are up except for speculative small caps which have not rallied since Q1.The S&P 500 Healthcare Sector was up 2.03% last week and has one of the lowest valuations with well known drug pricing risks. There should be less global macro risk in healthcare stocks.
- Our top picks have been large cap biopharma specifically ABBV BMY MRK RHHBY. We added ALXN to the portfolio at $101. Today the IBB is up 1.3%
- For more “risk on”we bought XBI last week at $76 for mid and small cap exposure..
- Gene therapy is green today and we added CRSPR Therapeutics (CRSP) at $40. This subsector has been very disappointing with most gene therapy stocks at 52 week lows.MGTX soared in Q1 and is now at a low of $14.73.
- Mid-caps are mixed bur one of our previous picks Seattle Genetics (SGEN) hit $102 up 15% on a positive trial for a HER2 breast cancer study.
- Tools and Dx plays trending up : GH up 3.75 to $67.72, Illumina (ILMN) up 1.43% to $313. Veracyte (VCYT) up 5.63% to $26,
We are attending the BIO Investor Forum this week in San Francisco and will provide articles on biotech industry trends and small cap trading opportunities.
Update after todays close.