JPM Notes #2 : Investors buy into Life science innovation

After a lackluster day Monday the tape for JPM life science sector stocks picked up with a decent rally. Major ETFs reversed the trend from yesterday with the IBB up 1.64% and the XBI up 2.94% despite NASDAQ being down 0.24%. It was a green screen day.

Gene therapy stocks were hot maybe because of an update from Editas Medicine (EDIT) presenting Wednesday morning. Despite the clinical risk of gene therapy technology major biopharmas have a partnership or have acquired a company in gene therapy like the Roche acquisition of Spark Therapeutics for $4.7B. Despite the trend toward biotech M&A a Bloomberg journalist cautioned on Regulatory scrutiny and delays.

Mid-caps were movers today spurred by the potential of licensing deals, new products and M&A. Well known mid -caps we track soared today: AGIO  ANAB EXEL INCY NBIX RARE SRPT XNCR. Agios  (AGIO) was up 8.6% on their Agios 2015 “Strategic Vision  “ updating their portfolio for treatment of hematologic malignancies, solid tumors and rare genetic diseases.Many of these Compare gave preliminary financials and product portfolio updates prior to JPM like Neurocrine Biosciences (NBIX)

bluebird bio (BLUE) was up 6.29% on their product announcement for ZYNTEGLO gene therapy for transfusion dependent Beta -thalassemia in Germany and their Company update after the close today, At the bluebird bio presentation after the close today bluebird bio focus on four products for 2020, 5 in the clinic and 1-2 others at an earlier stage.The BLUE stock is at $92 recently off te bottom of near $70 but well off April highs in the $160 range.

Many of the large caps presented preliminary results and their stocks were up or stable over 5 days: BIIB, BMY, MRK, RHHBY. But their is a lingering issue of high drug prices so despite the gains achieved with large caps over 12 months keep this in mind. We will provide a large cap biopharma update comparing valuations after all final financials are in.



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