Update–11:30am Aug 28 Green Screen in Biotech Especially CAR-T Plays (BLUE,CLLS,JUNO)
NASDAQ up a tad 0.21%, but broad market flattish.
Biotech Deal Boosts ETFs: FBT up 2.71%, IBB up 1.53%, XBI up 2.53%.
Bellwether Celgene (CELG) up 1.4%.
AMGN up 1.24%, BIIB up 2.67%, GILD up 1.57%.
Mid-Caps: ICPT up 1.98%, INCY up 0.9%, JUNO up 18%, SGEN up 2%.
Speculative small caps are on a tear for example: ARRY, CLLS, EDIT, GLYC, KPTI, NTLA, XLRN, ZIOP etc.
Rayno Life Science Picks up: bluebird bio (BLUE) up 9%, FMI up 1.6%.
Novartis (NVS) down slightly another leading player in CAR-T and immuno-oncology
Healthcare sector is holding up well up 15% YTD despite pricing attacks.
Gilead Sciences Pays $11.9B, $180/share, for Kite Pharma (KITE), a Leader in CAR-T Therapies for Cancer
Investors have been waiting for a sizable biotech deal from Gilead whose shares have been sagging from stalled HCV revenues and more competition. CAR-T (chimeric antigen receptor) has shown great promise for targeting blood cancers and KITE has several products under development with its lead product (Axi-Cel) up for review for lymphoma (DLBCL) in November with potential approval in 2017. KITE has no revenue but has a broad pipeline for CAR-T as well as T cell Receptor immunotherapies. The acquisition gives Gilead a long term growth path into oncology although not without clinical risks.
Despite high prices expected for CAR-T therapies they are potentially more cost effective because of long term cures compared to existing cancer drugs.
See other Raygent articles on CAR-T.
Biotech stocks are broadly up, XBI up 2.8%. We will review markets at midday.