Rayno Biopharma Portfolio: 2017 Was A Good Year But Lagging in Q4
2017 was a volatile year for biopharma stocks but overall performance was good for those holding ETFs or selected Rayno picks for the period. It was a more difficult year for traders particularly in small caps. Many stocks peaked in early October when concerns about drug pricing hit the news cycle. Catalysts did not help later in the year as expected such as M&A deal news and breakthrough clinical milestones. Also global markets stormed ahead in Q4 2017 offering investors many alternatives to healthcare.
- Top 2017 winners in the Portfolio were speculative stocks: Foundation Medicine (FMI), a molecular information platform for oncology up 285% and bluebird bio (BLUE), an emerging gene therapy and CAR-T developer up 188%.
- The best performing large cap in our portfolio was Abbvie (ABBV) up 41.5%.
- Our top ETF pick was the SPDR S&P biotech XBI up 43%.
- Without in-depth analysis it looks like the Fidelity Select Biotechnology Fund (FBIOX) beat the the large cap IBB by 6% points.Use it for large cap exposure.
- Gilead Sciences (GILD) was flat YTD but the Kite Pharma acquisition should provide long term growth.
- We added Celgene (CELG), a leading cancer and inflammatory disease growth Company, whose stock was crushed on revised 2018 guidance. The stock hit $109 in December off its lows near $100 before a Bernstein downgrade. Investors holding the stock should wait to see an update at the J.P.Morgan Healthcare Conference before taking action.
Sign up now for J.P.Morgan Healthcare Meeting Updates in early January.
Disclosure long: ABBV BMY CELG FBIOX GILD RHHBY
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