The year is off to an even worst start as all the secondaries are getting bad prices (to varying degrees of bad) and all are breaking those prices. China continues to collapse taking commodities with it as well as strengthening the dollar taking the markets with it. On the encouraging side, the technical analyst at […]
December 30 Biotech Update
Nothing newsworthy for the sector has happened in the past day. We had a nice rally the other day and perhaps that continues with a positive bias into the end of the year as investors and traders finish up the year but with volumes drying up it is really a toss-up how it will trade. […]
December 14 Biotech Update
We are once again in a macro world and the sector will be driven by it. Of course, even if we were not in a macro world the sector would likely still be underperforming as ASH did not inspire a lot of confidence and the sector offers a lot of chances for tax loss selling […]
November 25 Biotech Update
Trading is slow this week but news is not. Yesterday was better but I still think it is too early to call the sector back but at the very least I believe is has found its footing. Interestingly it seems that the SMID caps are outperforming the larger caps (finally) although they have a lot […]
October 28 Biotech Update
The sector seems to be getting its feet but unevenly and in fits and starts. It looks like the large caps are probably the most consistent outperformers with some strong SMID names but as a group it is much more mixed. We continue to be in earnings seasons and likely explains the outperformance of the […]
September 25 Biotech Update
The sector continues to get hit with the broader market. It feels like the sector is still facing the headwinds from the pricing discussions but as it fades into the background, the headwind will lift. Of course, it has to fade into the background and that remains an open question. My base case remains that […]
September 21 Biotech Update
Another slow news start to the week. The market background seems better but with a lack of real news/catalysts, the sector is likely we trade in line with market. It will be interesting to see how the sector trades with a lack of news as it may give us at least some sense as to […]
September 14 Biotech Update
Talk about a slow start to the week. Nothing really new, which probably means all eyes will remain on the Fed. I have no idea whether the Fed is going to raise rates or not or whether the market moves higher or lower if the rates are raised or not. In some ways, the best […]
September 11 Biotech Update
Macro seems to be slowly fading into the background but note that I said slowly as it will likely take more time and it should remain meaningful in the short term. Of course, fading into the background does not mean all is clear for the next move higher as I read the market as simply […]
August 10 Biotech Update
We are getting a spurt of IO collaborations this morning but no major news or M&A. After the sell off Friday (and come back), I would not be surprised to see that positive momentum continue this morning. Worst case scenario would be early strength and then faded all day. Best case, obviously, would be early […]
July 29 Biotech Update
The sector was a strong performer after the bell but it did not seem to last long. The sector should be strong given the bulk of the earnings but I cannot shake the feeling that sentiment has slipped. Perhaps it is the broader market acting as a drag but I am not convince the sector […]
July 27 Biotech Update
The market looks bad and it is bringing down the sector although I think BIIB has done a pretty good job at reversing some bullish biotech sentiment. That being said the sector might be outperforming the broader market a little as there was a nice big deal announced this morning. When all is said and […]
July 24 Biotech Update
Unlike earlier this week where bad news was shrugged off, it looks like we are going to see selling on the bad news. This pullback should eventually generate nice bargains if it picks up steam but it might not be an immediate buy the dip as earning have been relatively mixed, so money may be […]
July 21 Biotech Update
The sector was green again yesterday and this morning but it does not seem to be a broad based move. The small caps appear to be underperforming and among the large caps it seems isolated to CELG with AMGN and GILD being relatively weak. This narrowing of the move tells me that we are much […]
July 17 Biotech Update
I leave town and the sector runs to new all-time highs and I come back and there is a pullback. Perhaps the market is trying to tell me something. It is not surprising to see a pause even a pullback but I also think people were underinvested expecting a deeper sell-off, so I am not […]
July 9 Biotech Update
It is a new day and apparently a new market with everything now OK. Clearly chop is the order of the summer (as is amnesia with the market having almost no memory day to day). As always it matters less how we start and more how we end but given the lack of any real […]
July 3 Biotech Update
This is the last note before the fourth and I wanted to spend time going into a new therapeutic space and highlight a new company (well, it is new to me but has already had a good run this year). I also wanted to wrap up the discussion from yesterday as the trading action is […]
June 17 Biotech Update
Market doing a little better but biotechs seemed to take yesterday off despite the broader rally. The sector seems to be more positive today (there were certainly bright spots yesterday but in general the sector appeared to underperform). We are helped by some M&A, which goes with the speculation that developed yesterday. Again, the summer […]
June 16 Biotech Update
The market is quite resilient. While we did not get a full reversal yesterday, the market came back and biotechs seemed to outperform. This morning is off to a good start as the late day move is getting some follow through (but was quickly squashed as we seem once again bound in a range). Of […]
June 10 Biotech Update
This is sort of a different start to the day with the market off to a good start but biotechs the obvious laggard. The sector had been one of the relative bright spots but now that the market is recovering, they are lagging. This seems more news related (discussed below) and we need to see […]
