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, […]
May 10 Biotech Update
The sector rallied yesterday and the market in general seems to be shrugging off the escalation in Syria last night. I am a little surprised in that we saw the largest engagement between Israel/Syria since 1973 and perhaps the largest engagement between Israel/Iran ever. It seems that as long as it stays in Syria the […]
May 8 Biotech Update
It continues to be a slow news week, which is not completely unexpected given the series of large cap earnings. Today might very well be a macro day with Trump scheduled to release his decision on the Iran deal. That could fall any numbers of ways, so I suspect the market to tread water until […]
May 7 Biotech Update
It is certainly a slow start to the week. We should get a sense of the underlying strength of the sector this week as the large cap earnings are past and news flow decreases. Of course, we still have the Trump drug pricing speech coming at some point but that continues to be pushed back […]
Star Wars Day Biotech Update
We end the week on an OK set of news. It could certainly have been worse but nothing that is likely to fundamentally revalue the sector or reverse the chop. 1. SRPT finally reported the negative trend vote that most expected. As I also expected, there was a lot of notes talking about the expected […]
May 3 Biotech Update
There was a relative lull in the news yesterday and today but I would argue that the sector held up pretty well despite the GILD miss. That either means that GILD is less meaningful for the sector or that the drumbeat of disappointing earnings has priced in pretty negative views of the sector. In any […]
May 2 Biotech Update
It does not seem like today is going to be a good day for the sector but we have to see how it all plays out. There is some important earnings that might have import for the broader sector. 1. GILD had an absolute awful quarter. The only positive was that the CART crushed expectations […]
May 1 Biotech Update
It looks like the market is in dangerous territory but barring some exogenous shock (perhaps war between Iran and Israel as a potential source of shock), it seems more like a long period of sideways trading. All rallies are being sold but the market has enough oversold conditions that it would be difficult to have […]
April 30 Biotech Update
I have a lot to catch up on this week but wanted to start this morning with a couple of points. We are going to be getting a lot of additional earnings this week and so far they have been a mixed bag. There are a couple of interesting points that have come out so […]
April 24 Biotech Update
There is a decent amount of news flow today, which makes sense given that I have little time to cover it all this morning. I will try and go through the main news and touch on the most important aspects. Overall, it is not feeling like this earning season will be enough to change sentiment, […]
April 23 Biotech Update
Sort of a quite start to the week but it is Monday of the first week of earnings, so it is not completely surprising to see a slow start. Obviously news will pick up with the earnings this week and perhaps we get some news outside of earnings but that remains TBD. 1. PRTA announced […]
April 20 Biotech Update
It is all about deal making it appears. We are getting closer to the earnings but deals are happening and might be happening or not happening as the case may be. The sector remains in an odd spot where large caps need deals but they also seem reluctant to make deals, although they do take […]
April 19 Biotech Update
We are starting to enter into earnings season, which will pick up next week. This will obviously be driving price action and there is usually a little more risk/volatility in 1Q earnings given the donut whole. This happens every year and you would expect that people would understand by now but every year there is […]
April 18 Biotech Update
We certainly seem to be moving away from the macro concerns to more sector specific issues, which is good to finally see. Of course, we are only one news cycle away from the macro driving the sector again but for now it seems like the sector survived and seems to be doing well. 1. BPMC […]
