Biotech Stocks Gain Momentum in a Major Rotation
- SMID Biotech Stocks as tracked by the XBI are up 3.65% on Monday and close to a new FIVE year high
- Abbvie bolsters Immunology Portfolio with acquisition of Apogee Therapeutics for about $10.9B.
- Broad momentum in many SMID biotechs portend a good week.
TECHNOLOGY stocks are exhausted and taking a rest today as biotech stocks get some deserved attention. Our SMID Trading list showed a lot of green screen helped by the XBI breaking out up 3.65% to $145.86. The equal weighted small cap State Street SPDR S&P Biotech ETF(XBI) is up 10.79% over 4 weeks and 19.63% YTD. The IBB was also up 1.94% YTD and the iWM helped up 0.88%.
Many of our SMID Biotech picks gained strength: ABSi up 13.36%, COGT up 3.76%, DNTH up 5.92%, PTCT up 2%, PTGX up 1.92%, RCUS up 12%, RNAC up 3.3% and Xencor (XNCR) up 10.84%. There was no news on XENCOR but with a Market Cap of about $1B and a strong cash position of $6/sh and a broad pipeline of clinical stage engineered antibodies for cancer and autoimmune disease prospects look good for a partner or milestone data.
Abbvie (ABBV) gained 6.25% on news of the acquisition of Apogee Therapeutics strengthening their portfolio of anti-inflammatory products for atopic dermatitis and asthma. Abbvie’s current immunology portfolio includes $7.3Bin sales from Q1 including drugs Skyrizi and Rinvoq.
We will update many of our SMID trading stocks this week so stay tuned. AS of 10:20a EDT many of our SMID biotech stocks are up 2% and more. There IBB is up 4% over 5 days.
