Update-3 Coronavirus stocks are back led by testing boom and near term clinical news on CPOVID vaccine. Keep in mind it was a “triple witching” day.Here is a look-back to where we were with Coronavirus stocks on June 28.
- All pure play testing stocks are up big today on CDC and Gov buy-ins: CODX up 3.56%, GNMK up 11.87%,QDEL up 10.87%.
- Even our new pick Orasure Technologies (OSUR) has traction today up 7.98% to $12.58.
- Other winners today in late trading: INO, MRNA, TDOC, VIR, XBI.
Update-2 12:41P 9/16 Coronavirus stocks are running, update at close: CODX,GNMK,INO, NVAX,VIR,XBI…etc
Update-1…1:30 P .EDT. 9/15….Biotech Rally Continues Sparked by M&A and “Deal Time” !
Investors are seeking the next buy-out
- Our Top Trade the XBI is up again to $113+handle.
- IBB up 1.63% to $137 handle.
- Coronavirus winners: vaccine stocks pick up steam–AZN, MRNA,INO, NVAX.
- DX stocks lagging: GNMK, QDEL, OSUR.
- Gilead Sciences (GILD) holding up after deal and tough reviews at $66.48.
- Large caps are great for core portfolio, despite pricing rhetoric from Trump: ALXN, AZN, BIIB REGN VRTX
Deal Time in Biotech-Gilead Sciences Acquires Immunomedics for $88/share or $21B
- Immunomedics Acquisition Bolsters Gilead Oncology Portfolio with Trodelvy, a first-in-class antibody-drug conjugate commercial product to treat triple-negative metastatic breast cancer.
- Trodelvy will complement Gilead’s oncology pipeline assets some of which were recently acquired over the past years and Kite.Pharma for $12B about 2.5 years ago.
- There will be skeptics about this deal although most analysts thinks Gilead Sciences needs more oncology products.
We”ll need to see how the market values this deal but it should boost biotech stocks as the sector usually moves up on deal news.I have heard rumors about Immunomedics (IMMU) being acquired for a year now but never followed the Company, nor owned the stock.
As of this writing at 11;47PM EDT NASDAQ futures are up 1.5%, so expect a rally in biotechs ETFs like IBB and XBI. Also note in our posts from last week that trading has become more optimistic on a COVID vaccine launched by year-end
Here is the May 6 and Q1 Corporate Update for Immunomedics.
Chartists would be wrong on IMMU as there has been a topping pattern in the low 40s since the sector top around mid-July. However the stock was favored by analysts with a rating of 1.8. Revenues are only about $20M.
Long GILD, XBI many others.