Today certainly started as a better day in the sector but I would be careful of chasing this move. Ideally, we spend time building a base but a day or two of running is possible given the oversold conditions in the space. At this point I would lean towards the sector having put in a […]
March 24 Biotech Update- Being Kicked When You Are Down
Every sell off starts the bubble talk and the more severe the selling the more intense the bubble talk. What is interesting about this time is that the bubble talk has a broader audience as the sector seems to have been on more radars. As I have been saying for awhile, this sell off is […]
March 21 Biotech Update
[This was written Friday but the site was down and I was unable to post it. I am publishing it as it was Friday and will write another column later today for more recent news] Well, it was a manic day with a very nice win followed by the broader morning bloodbath in the sector. […]
March 19 Biotech Update- Staying Focused
The trading today seemed a little calm (could be because I was out most of the morning) but this is not bad given the recent swings. A period of steady base building might be the most productive outcome but we still need to see many more days before we can be confident as to what […]
Quick Confirmation
I just talked to CNAT and confirmed that they have not seen any lipid abnormalities either at the pre-clinical or clinical stages. In addition, they noted that there is no reason to expect the emricisan mechanism of action to generate any lipid abnormalities. Obviously, this does not completely rule anything out but simply confirms my […]
Catalyst Watch – Vol. 2, Edition 8 (3/18/14)
Below are current tactical and strategic thoughts on approaching FDA and clinical trial catalysts for select names. Estimates, values and views are as of the date published (or are noted), are subject to potential future, pre-catalyst revision and are not intended as investment recommendations. Please read our Disclaimer: (1) Catalyst Watch List – Update: CYTK: […]
March 18 Biotech Update- Cause for Optimism?
This morning was much more encouraging than yesterday with the sector finally seeming to outperform the broader market. Obviously one day does not make a trend and even despite the price action; most of it seemed on fairly light volume so this could still be the pause that refreshes for the next move down. In […]
Corcept – Fourth time a charm?
Corcept Therapeutics (CORT) is currently awaiting topline Phase III data for Korlym(mifepristone) in psychotic depression in the second quarter. Currently, Corcept projects Korlym will do net revenue between $24-$28 million under it’s limited label for endogenous Cushing’s syndrome, a rare condition in which the adrenal glands overproduce cortisol. Below you will find an assessment of […]
March 17 Biotech Update- Due for a Bounce?
The sector looked good this morning but seemed more in line with the broader market and not necessarily a signal of strength. We are at a region where we should see a bounce in the IBB but the move this morning was not really encouraging. It seemed that there were more than enough sellers on […]
March 14 Biotech Update- Seeing Red as Value or the End?
Interesting morning for the sector with the broader market relatively unchanged and the biotech sector selling off hard. Why would this be the case? Is it something fundamental to the sector or just jittery traders dumping unnecessarily? Given the macro uncertainty in the Ukraine it could just be the case that traders are reducing risk […]
Quick Take on GERN Clinical Hold
Geron announced this morning the FDA had placed a clinical hold on its lead drug Imetelstat. While the agency cited only trials in ET, PV, and MM, the company also expects a delay in its key Phase II MF study- originally set to begin mid-year. Shares plunged from $4.40 to as low as $1.39, but […]
Catalyst Watch – Vol. 2, Edition 7 (3/12/14)
Below are current tactical and strategic thoughts on approaching FDA and clinical trial catalysts for select names. Estimates, values and views are as of the date published (or are noted), are subject to potential future, pre-catalyst revision and are not intended as investment recommendations. Please read our Disclaimer: (1) Catalyst Watch List – Update: CYTK: […]
March 12 Biotech Update- Ovarian Cancer in the News
The broad sector continues to try and finds its footing, so there is really nothing new on that front. I want to spend this note talking about two companies that I have been receiving questions on the past couple of days. Please keep the questions coming as I want to make sure and touch on […]
Upcoming events for Merck
Members of Chimera Research Group have successfully been trading Merck for the past few months, especially Joe Gantos(@GantosJ). Merck has been one of the strongest big pharmas over the past few month on the heels of pipeline developments. With a new year, we want to provide a road map for what’s to come in the […]
March 10 Biotech Update- Do Not Underestimate CNAT
The sector seems to be searching for a bottom and it is not clear whether this is simply part of that process or a pause before the next leg down. As I noted last week, I will not try to call the bottom but will be a buyer on the large moves down. Whether this […]
Upcoming events for Pfizer
Pfizer (PFE) isn’t traditionally on my watchlist as a name to follow, however, this may be an exception. Palbocicib is likely the most exciting pipeline product in development at Pfizer right now. It received Breakthrough Therapy designation from the FDA in April 2013 for the treatment of breast cancer, following very encouraging Phase 2 results […]
March 7 Biotech Update- Selling Feeding Selling
I am going to spend today talking about the sector in general and send this note out early in light of the significant sell off that started yesterday afternoon and continued this morning. While the bulk of the discussion seemed to center on GILD it should be noted that it was the sector that got […]
March 6 Biotech Update- Oh the Humanity
It is Thursday again and as usual I do not have much time to write anything in depth. In general, the broad market looked good but the sector seemed pretty heavy. I cannot shake the feeling that the sector is starting to turn in that the runs higher seem further apart and the intraday dips […]
Week’s Option Activity (2/20 ~ 3/04)
The following stocks had notable activity in their options during the past week(s): $CYTK (2/20): There were two large trades – one bullish and one bearish. (1) Bullish: 2,900 MAY risk reversals were purchased (stock at $9.85) for net 1.10 or total net cost of $319,000 (2,900 MAY 7.50 Strike Puts were sold for 1.90 […]
March 5 Biotech Update- Rumors Dispelled
I am back from vacation and it looks like I did not miss much (I say tongue in cheek). Of course, even though I missed two big days of trading, my portfolio is basically unchanged since I left. I think that just goes to show how volatility is dangerous for a portfolio as one is […]
