The trade war is taking a lot of the headlines and I am running out of time to write as they are replacing my computer soon, which will likely take a lot more time that it reasonably should but I wanted to write a quick note. 1. SRPT hit a grand slam. Not only did […]
June 18 Biotech Update
Nothing new to start the week outside of a pretty weak market. I am not sure what the catalyst outside of an extended market but it looks again like the sector is hitting resistance and unable to break out. Perhaps there is continued disappoint in term of the lack of deals but regardless of the […]
June 15 Biotech Update
EHA is here and there will be some updates that are of interest but for the most part, I do not see it as having a fundamental effect on the sector. The XBI is flirting with breaking above resistance but it is struggling at what looks like the third attempt to break higher at these […]
June 13 Biotech Update
The sector had a decent day, although participation was not great. We seem to be on the verge of breaking higher (at least in the XBI) but it will be difficult to do unless the rally is broader in its scope. Of course, one cannot complain too much given that we are generally moving higher […]
June 12 Biotech Update
Nothing too exciting in terms of market action yesterday. There was some relatively outperformance of large caps versus small caps but that was mainly due to the gene therapy carnage. This is once again going to be an interesting test of sentiment in that space. Gene therapy companies have been pretty much Teflon in that […]
June 11 Biotech Update
I missed out on how the sector traded at the end of the week but it seems like the large caps had the slight edge over the SMID. We are entering a period of what should be some low news days but we do have EHA this week, which could provide some data but it […]
June 6 Biotech Update
The sector did a little better yesterday but given the strength of the market, it is not a great performance. That being said another couple days in the green and perhaps this year will be different and we will not see the post-ASCO selloff. Obviously it is early but something to keep an eye on […]
June 5 Biotech Update
We had our typical post ASCO selloff even after a morning attempt at a move higher. Even the ASCO winners ended up getting hit in the sell off. This was a sadly predictable reaction often gives us some nice buying opportunities. I would not rush in today as the ASCO selloff is typically not a […]
June 4 Biotech Update
Despite the lack of any real thesis changing news, ASCO seemed to be fairly typical. There will be a couple of big winners but more losers as you have both bad data and data that was good but not good enough for inflated expectations. Given the dearth of major data, I wonder if there will […]
June 1 Biotech Update
Happy ASCO days. The first day tends to be slow as news as it is information sessions, although later in the day we get some important CART data. In any case, by Monday we should have some interesting data to dissect. 1. CELG and BLUE have their BCMA CART data this evening. Expectations are high […]
May 31 Biotech Update
Some interesting news as we head into ASCO. While the trading action is a little better for the sector it is not exactly tearing it up. Of course, the lack of a real ASCO run up generally does not correlate with a lower than average chance of an ASCO hangover. It is possible that it […]
May 29 Biotech Update
You would think that after a long weekend there would be more news but it is a slow start to the week. Perhaps it is related to the upcoming ASCO conference. Unfortunately, it looks like macro might again grip the sector as another Euro based crisis has arisen with fears of an impending Italian crisis. […]
May 25 Biotech Update
We end the week as we started the week with not a lot of news and basically in a holding pattern for ASCO. Hopefully the sector does better today than it did on Monday and perhaps the anticipation of a long weekend is enough to get some buyers interested but we are certainly entering the […]
May 24 Biotech Update
There is a not a lot of news today so I will keep this short. The sector itself seems to be struggling as is par for the course. It is not accelerating to the downside, which is good but it is certainly not doing anything particularly bullish. Perhaps we start to see a move into […]
May 23 Biotech Update
This looks to be a macro day for the markets with I believe China fears percolating again. Unfortunately, these macro down days seem to hit the sector whereas the macro up days have limited effect. Perhaps today is the day that the sector outperforms on a macro down day but I would not hold my […]
May 22 Biotech Update
Well, the sector did not do great yesterday. It started off as expected which was following the market higher but lagging a little and then it just went downhill all day. That was a little surprising as there is ASCO coming with decent data and it is a little early for the post-ASCO sell-off. Perhaps […]
May 21 Biotech Update
So it looks like the trade war with China is off, which should be good for the market in general. Whether that risk on appetite will translate into the biotech sector is another question as they are not a real beneficiary of the lack of a trade deal. That being said they certainly sold off […]
May 17 Biotech Update
Some interesting moves and data coming out of the ASCO abstracts. There are some questions answered with these abstracts, although more questions remain unanswered. I suspect that many of the morning moves in these stocks will be moderated by the end of the day as ultimately there is nothing thesis changing that can come out […]
May 15 Biotech Update
Drug pricing will not go away and I think that is going to be true going forward. We should not expect it to go away and at this point, one could argue that industry valuations have reset to the point that the continuation of this risk is priced into the stocks. This does not mean […]
May 14 Biotech Update
Not much going on this morning. The big feared Trump drug pricing speech was a giant nothing burger and anyone who has paid attention the past 18 months could have predicted it. There is nothing that congress is going to pass and there are limited options that the administration can do by itself. In addition, […]
