1/11/24 10:21 A EST …..Small cap biotch rally fading fast with CPI at 3.4% and market focus on crude disruption in Middle East and Bitcoin launch. XBI down 2.5%.
Healthcare Playbook: JPM 24 Day Two
The rally ebbed today as TSY yields rose yet there were good gains in large cap tech stocks despite indices moving along the flat line. Large cap biopharma was mixed but good gains were had by GILD up 2.46% to $86.06 near highs, MRK up 0.89% to $118.43 , VRTX up 0.45% to 421.01 and ABBV up 0.5% to $162.31. Life Science ETFs were flattish IBB up 0.32% and XBI up 0.19% to $93.60 close to 52week highs. The sagging healthcare sector (XLV) got a lift since early October off lows at the $123 level to $140.33 close to 52week highs.
The biotech rally has had strong momentum particularly among the SMID caps (see list below) driven by M&A. There were some good movers from our SMID trades today: ABOS up 3.08%, CPRX up 1.19%, IMTX up 12.27%, SUPN up 1.83%, TWST up 6.2%, and VCEL up 7.24%. Of course the small caps are very volatile but we think many of them will hold their values and the objective is a buyout or a long term hold. We will review at the end of the week.
Here are some the significant news items from the Conference that has impacted our portfolio:
- Catalyst (CPRX) raised about $150M.
- Immatics was up over 12% on deals with BMY and Moderna and a business update.
- Twist Bioscience was up 6% based on presentation.
- Vericel was up 7% on prelim earnings and 20% growth projection.
- BDX was off 3.99% on today’s presentation?
Some other news of today:
GSK bought Aiolos Bio for $1.4B for asthma portfolio.
China approves Alzheimer Leqembi treatment by Biogen and Eisai.
Psychedelics are being funded. Stay tuned.
Lilly is still the innovation leader.
GILD impressed with its pipeline and has goo value.
LONGs: need more work: BDX, ILMN, IMTX, PACB, TWST, VCEL.
| P 1/20/23 | % Perf | 2/4/23 | 12/24/23 | Perf % | ||||||
| Ticker | $ | P | % week | P | 4 wks | YTD % | 1/9/2024 | |||
| P | ||||||||||
| ABOS | 5.29 | 3.57 | 51.27 | -33.89 | 4.35 | |||||
| CPRX | NEW | 16.1 | 19.62 | 16.58 | 19.62 | -10.86 | 15.29 | |||
| CRBU | NEW | 6.29 | 20.55 | 6.17 | 8.44 | -0.175 | 5.74 | |||
| CRSP | 49.61 | -25 | 55.27 | 4.72 | 63.67 | -9.68 | 56.63 | 62.63 | ||
| CYRX | 21.75 | -42.34 | 25.24 | 9.41 | 16.09 | 14.76 | -7.26 | 15.59 | ||
| EVH | 30.83 | 13.74 | 31.96 | 2.21 | 32.08 | 8.56 | 14.25 | 32.85 | ||
| GERN | 3.19 | 9.24 | 3.22 | 3.59 | 2.29 | 17.44 | -5.37 | 2.11 | ||
| HOLX | 79.66 | 22.41 | 84.68 | 2.28 | 71.04 | -1.58 | -5.04 | 72.12 | ||
| IMTX | NEW | 9.3 | 9.9 | 20.88 | 13.66 | 12.17 | ||||
| PACB | 11.29 | 55.68 | 11.58 | -1.7 | 8.59 | 28.4 | 5 | 7.68 | ||
| QDEL | 88.13 | -11.56 | 89.7 | 3.93 | 73.98 | 7.19 | -13.65 | 72.46 | ||
| SUPN | 40.3 | 12.3 | 41.61 | 2.29 | 29.23 | 6.04 | -18.05 | 28.32 | ||
| TWST | NEW | 12/2 | 18 | 3.76 | 54.39 | 34.03 | 37.15 | |||
| TXG | NEW | 12/2 | 47.84 | 56.58 | 30.52 | 55.27 | 50.76 | |||
| VCEL | NEW | 31 | 34.75 | -2.09 | 31.93 | 37.31 | ||||
| VCYT | 24.89 | 39.43 | 26.67 | 2.46 | 28.27 | 8.23 | 19.13 | 28.29 | ||
| XBI | 86.99 | 14.75 | 90.39 | 1.12 | 87.62 | 20.36 | 5.57 | 93.6 | ||
| ARKG | NEW | 35.28 | 32.81 | 18.88 | 16.22 | 32.61 | ||||
| BDX | old pick | 240 | ||||||||
| CERE | acquired | 42.25 | ||||||||
| CYTK | in play | 101.97 | ||||||||
| ILMN | redo | 139.74 | ||||||||
| 12/24/23 | ||||||||||
| IJR | 108.34 | 12.96 | 14.48 | 104.89 | ||||||
| IWM | 201.48 | 13.11 | 15.55 | 194.97 | ||||||
| IBB | 133.77 | 12.68 | -1.89 | 138.94 | ||||||
| QQQ | 408.38 | 4.7 | 53.36 | 405.75 | ||||||
| XLV | 135.02 | 3.52 | – | 140.33 | ||||||
| PRHSX | 86.84 | 3.67 | -3.32 | 89.96 | ||||||
| IHI | 53.65 | 7.34 | 2.05 | 54.59 |