11/9…at close..NASDAQ lower by 0.6% after 12 day win streak. IBB down 1.34% coinciding with Biden drug pricing proposal? Large caps mixed but no sell-off. Sold my ARKG and XBI trades at about 3% profit. Vaccine stocks weak. Mid-cap focus stocks weak. Mid-cap biopharmas weak and BHVN down 12.9% on Pfizer deal.
Will look at large cap biopharmas metrics tomorrow as well as political drug pricing issues.
At close-11/8 Momentum rally continues withs some of our focus life science stocks recovering from Friday’s selloff: CRSP, CYRX, QDEL, VCYT. Small caps outperforming. Large caps rallying: ABT, MRK, REGN, UNH. Vaccine stocks coming back: BNTX, MRNA,NVAX. XLV up 0.61%.
11/8 10a News Update...Regeneron (REGN) announces Phase 3 data on subcutaneous antibody cocktail for long term protection against COVID-19.
Antiviral Breakthrough Drug Disrupts Biotech Stocks
- Antiviral breakthrough drug disrupts biotech stocks and eases pandemic fears
- Sector shift bolstered by earnings and jobs data.
- Life science stocks are hard to trade as volatility picks up.
Clinical data from Pfizer’s experimental oral drug offers another option for treating COVID. The Pfizer COVID-19 pill reduced hospitalizations and deaths in serious illness and reported to be 89% effective. Pfizer (PFE) stock soared over 10% on Friday to $48.61 Coronavirus stocks reeled on the news with unusual volatility so it will take a few days to settle out. Vaccine leaders BNTX and MRNA were pummeled. COVID antiviral stocks were down: MRK down 9.86%, REGN down 5.57% ,VIR down 14.47%. Even the IBB got hit 3% to $156.94 so the technicals for biotech are disrupted and are a cautionary signal. As you know by now momentum stocks like Moderna (MRNA) are sensitive to big news.
COVID diagnostics stocks were down as well.: ABT down 3.66%, HOLX down 3.98%, OSUR down 11%,QDEL down 11%. Even a blue chip life science tools Company Thermo Fisher (TMO) was down 3.59% to $616.80 yet still up 32.4% YTD.
We will review large cap biopharma metrics and opinions this week.Here are a few large caps that look less volatile on the COVID news: ABBV, BMY, GILD and RHHBY.
Some experts in the field are calling the antiviral breakthroughs “the end of the pandemic as we know it”. So give it a week or two for biotech analysts to review and comment.
In the meantime as the overall market races to new highs the “re-opening trade” is gaining momentum particularly small cap growth stocks: see IJR and IWM up 6%! The XLV was flat for the week but winning sectors had momentum: Consumer Discretionary up 4.99%, S&P MidCaps 3.97%, S&P InfoTech 3.34%, and S&P Materials 3.19%
Disclosure long : ABBV, BMY, GILD, IJR, PFE, IJR, MRK, QDEL,REGN,RHHBY, XBI.