Update-4 Mixed stock market in healthcare and biotech but in an overall weak day as FED and CPI looms. IBB down 0.62% to $132 level.
- Abbvie (ABBV) beats with Revenue of $58.04B an increase of 3.3% but Humira biosimilars weigh on profit forecast ; pipeline and Botox looks good. New immunology drugs Skyrizi and Rinvoq booster immunology sales with total revenues including Humira decline expected to from $28.8B in 2022 to $23.2B in 2026.
- Vertex beat on earnings and product revenue $8.9B an 18% increase.Net income up avert further selling at $292 level.Company is a leader in cystic fibrosis with a partnership deal with CRISPR Therapeutics for gene editing for hemoglobinopathies.
Update-3 …2/6/23…Investors shift back to large cap biopharma with GILD up 2.67% to $86 level with a Fwd PE of 11.67 and a Div of 3.46%, Trodelvy breast cancer drug gets a new indication.
Regeneron (REGN) hits new highs at $794 beats estimates on Dupixent strength.
Earnings review and metrics for all large cap biopharmas by end of the week.Vertex reports tomorrow. Abbvie on Thursday.
Leading large cap stocks: REGN, GILD, VRTX, BIIB, MRK.
Update-2 …2/1/23…Thermo Fisher Scientific (TMO) beats again stock is up over 3% to $588 handle. Gives bullish outlook for 2023 with 7% growth to $45.3B. Full year 2022 revenue up 15% to $44.92B with EPS $23.24. Brilliant management with financial savvy and M&A in Life Science Tools and Diagnostics.
FED raises rates 0.25% no surprises and market turns green as Powell speaks. NAZ up 1.54% as of 3P EST.
Update-1 1/31/23…A Great Start to 2023
January 2023.ends well with a green screen. Many of our small cap shares were up and we added two more SMID biotech stocks: CRISPR Therapeutics (CRSP) at $51and Intellia Therapeutics (NTLA) at $42. Stops if down 5%.All the major indices had a strong day up over 1%. All sectors were strong but consumer discretionary, materials and industrials led the day.
- The XBI was up 2.07% at $88.90. The IBB was up 1.30% to $136.90.
- The IWM was strong up 2.43% to $191.48.
- The NASDAQ -100 (QQQ) was up 10.64% YTD.
- Regeneron (REGN) was up 2.99% to $758.47 on Dupixent revenues with earnings to report on 2/3.
Large cap biopharma earnings to follow this week. FED day tomorrow.
Sector Shift Stalls Healthcare Stocks-Big week Ahead with Earnings and FED
- Healthcare stocks were weak last week with the XLV down 2.2% YTD.
- Small cap biotech stocks remain frothy with good gains.
- Trading this week can be perilous ahead of FED and major earnings reports.
Last week saw big 4% gains in the Nasdaq-100 (QQQ)and Infotech stocks aa swell as major sectors across the board. Our big winners in 2022 have reversed and are weak in 2023 with ABBV down 9.68% and MRK down 4.3% YTD.Concerns about sales growth from blockbuster drugs such as Humira from Abbvie and Keytruda from Merck curbed buyers. But Abbvie did a good job at #JPM23 showing how the Company expanded their pipeline. UNH also took a 10% hit since mid -December on downgrades and earnings revisions. But all three stocks remain core holdings longer term in a healthcare portfolio. Our recent small cap trades are shown in this post show big gains from 2022.
Biotech stocks are off to a great start in 2023 with the IBB up 4.5% and the XBI up 7.7%. Small cap speculative life science stocks have made big run-ups in 2023 maybe because of tax selling late in 2022 and expectations of less aggressive FED after this weeks’ 0.25% rate rise. Some macro analysts have cautioned traders on speculation in these stocks saying Powell might actually call them out!! The problem with FED Meetings is the Q&A where maestro Powell may go off script and create volatility in the markets.
Stocks are weak across the screen today but GE Healthcare is up over 3% to $72 level today the spinout from parent GE doing very well since #JPM23. Keep in the back of your mind that the Biden Administration has a plan in September to target companies for excessive pricing through legislation. Regeneron (REGN) was down 1% today despite news on Dupixent and an upgrade by Cowen with targets in mid $800s.
We are all annoyed by it but yes its all about a “soft landing” and the FED.
|10/25||%||12/31||% Perf||12/31/21||12/31/22||%Perf||1/28||% Perf|
|iShares NAZ Bio||IBB*||136||20||151.5||25.7||152.62||130.55||10.96||137.23||4.52|
|iShares Russell 2k||IWM||163||10||196.4||18.3||222.45||174.36||-1||189.58||8.73|
|SPDR S&P Bio||XBI||117||10||140.8||48||111.96||83||4.54||89.39||7.7|
|T.Rowe Hlth Sci||PRHSX||n/a||5||99.65||n/a||104||89||3.71||90.08||0.29|
|iShares U.S MedT||IHI||50||5||54.83||65.85||52.57||-4.15||54.06||2.83|
|Bristol Myers Sq||BMY||71.58||13.45||72.45||(0.690|