China is back in the news and for good or ill, the sector fundamentals do not matter. Right now it is all about China and the broader market will pull the sector higher or lower. At this point with no trade deal and with the arrest of the Huawei CFO (the daughter of the CEO […]
November 26 Biotech Update
After a nice long holiday break, I figured there might be some more news to start the week but apparently not. The sector is off to a good start but it seems macro driven in that it is simply following the broader markets higher. As long as the broader market remains positive, I suspect the […]
September 20th Biotech Update
Still a boring market in terms of news. The sector appears to have successfully defended the bottom end of its range but one could argue it done so simply by performing in-line with a strong broad market. Given the broader strength it would have been an awful signal to breakdown but regardless of the reason, […]
September 12th Biotech Update
The sector is certainly struggling and its inability to generate any consistent buying interest after the sell-off is certainly worrisome. All of that being said there are so many names that have been red everyday that there has to be a snap back rally at a minimum. CELG has lost over $1.2B in market cap […]
August 17th Biotech Update
Up, down, up, down, and repeat. Yesterday was green so today is most likely to be red. While it is difficult to discern a trend in such a low volume, choppy market, it does appear that the reds days are a little more severe and consistent than the green. It sort of makes one wonder […]
July 31 Biotech Update
I am still trying to catch up on all the earnings and happenings last week but I wanted to talk about two broad observations. In some ways, I benefited from not being able to watch the price action last week and only really looked at the news. In general, the price action does not reflect […]
July 16 Biotech Update
Not a lot of news this morning so I will keep it quick. We will have some earnings but large pharma tends to not be a leading indicator for biotech earnings but we will certainly watch to see if there is anything meaningful in the earnings or how the respective stocks react to the earnings. […]
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 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 […]
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 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 […]
March 23 Biotech Update
It seems like the market does not like 19th century economic policies, although I think it is likely more than simply the tariffs. The market has risen despite numerous political risks and now it seems to be more accurately reflecting the risks that arose the past 18 months. So it is not just the tariffs, […]
March 22 Biotech Update
Sector is down, although it is not clear if that is the sector or the prospects of a trade war with China that is bringing down the whole market. Between trade wars, the hawkish fed, and other potential macro issues, it seems that we might be entering into another period of macro trades affecting sector […]
March 16 Biotech Update
The sector did not really have an encouraging day yesterday. Instead of broadening out the rally, the previous leaders slipped and nothing picked up the slack. There was a chance for the large caps to move the rally forward but they did not do so. Of course, no one should worry too much about a […]
March 2 Biotech Update
Between continued hawkish fed speak and a potential trade war, the market is going to have trouble getting its feet, which includes the sector. The market has been able to shake off a lot of issues the past year or so and perhaps this will be yet another wall of worry to climb but at […]
February 23 Biotech Update
The market is looking a little shaky. It is not as if the selling is sending it down but every single spike in the past couple days has been sold. I see that as a lot of overhead supply of stock for sale, which is not great. On the plus side, the support below these […]
February 22 Biotech Update
A little pick up in the news flow but clearly the sector has been tied to the broader market in the immediate term. The spike in interest rates caused by the Fed minutes took the market and the sector down. While the direct impact of raising interest rates on the sector is minimal, it does […]
February 20 Biotech Update
There is some news to start the week but mainly some minor partnerships and some data. Not the large scale M&A that people always seem to hope for after a long weekend. It remains to be see whether the market forgives this pause in the M&A or whether these more minor events are enough to […]
February 14 Biotech Update
It is a pretty active morning for news, so I will dive right into the events as they are pretty interesting. I am not convinced that these will be enough to break the sector out higher but they are all generally positive in the longer term. 1. The least interesting news was NBIX earnings that […]
