Healthcare Playbook: JPM Day One 1/8/24

Healthcare Playbook -JPM Day One 1//24

Momentum resumed in many small cap biotech stocks today helped by dealmaking. The IBB was up 2.4% to $139.39 and the equal weighted small cap XBI was up 4.6% to $93.42. Among the big movers on our SMID Focus list below are: Caribou (CRBU) up 19.09% to 5.74, CRSPR Therapeutics (CRSP) up 3.33% to $62.69, Cryoport (CYRX) up 4.98% to $16.22, Geron (GERN) up 6.97% to $2.15, 10X Genomics  (TXG) up 3.43% to $53.41, Veracel (VCEL) up 6.98% to $34.79, VeraCyte (VCYT) up 13.1% to $29.10 . And tech stocks also resumed their climb with the QQQ up 2.7% to $404.95.

If the FTC lets the market do its dealmaking then smaller companies can get funding. That’s the dynamic.

Cytokinetics (CYTK) up another 18%++on Novartis buyout talks, after recent Phase 3 heart drug readout. ( How could I miss this one?)

Gene therapy stocks remained strong with green screen: CRSP FOLD NTLA SRPT. Here is CRISPR update

Obesity bandwagon: Pfizer still in plus Roche and Amgen.

1/9 update: ILMN up 4% on prelim earnings.

Medtronic (MDT) gets FDA approval for advanced DBS neurostimulator, stock up 2.36%.

• Pacific Biosciences (PACB) was a big loser down18 .51 % to $7.66 on their preliminary  earnings report and apparently no new deal?
• Small cap ETFS did well confirming a broader rally: IWM up 1.85,  IJR up 1.62%. ARKG up 1.9%.
• Large Cap Biopharma was a bit mixed; AMGN, GILD, LLY up but Regeneron (REGN) was off 1.1% to $902.88 on disappointing preliminary Eylea sales partly due to Roche competition.
• Several small deals were announced: BSX buys Axonics, JNJ buys,Ambrx, MRK bought Harpoon, etc.
• Nothing new from Biogen and Pfizer?

Data as of January 7, 2024.