October 10 Biotech Update

I was in my office yesterday to write but there is really nothing happening in the sector that is exceptionally newsworthy. I was hoping we would have some news today but it looks like we are in a bit of a lull. The good news is that it will not last too much longer as […]

October 6 Biotech Update

News continues to be a little slow but there are some companies that I want to follow up on given some discussions that have been percolating. In general, the sector continues to look good if not overstretched to the upside but as I noted before there is little reason to think that any pullback would […]

October 4 Biotech Update

We got some news to talk about today and it just so happens to be some good news and some bad news. In both cases, the news is specific enough to a stock that I doubt either would have broader implications, which means the sector will continue its longer term trend higher (with obvious peaks […]

October 2 Biotech Update

There is not a lot of sector specific news to start the week, although there seems to be some minor news. In these situations the sector tends to follow the broader market with a slight positive bias given that it remains in a bull market. I am a little surprised that there was not a […]

September 29 Biotech Update

The sector is off to a good start but it is a relatively slow news day but the news was certainly good. It will be interesting to see how the sector closes as given the recent strength we have not seen M&A buzz and rumors take off. That is an old bull market staple with […]

September 28 Biotech Update

The sector continues to grind along with a good day yesterday more or less signaling that the AXON news was taken as a stock specific event as opposed to a sector wide problem. That makes logical sense but is also something that occurs in bull markets. During the bio-bear market that would have crushed the […]

September 26 Biotech Update

We finally got the AXON news and it was pretty decisive. The question now is the impact that it will have on the broader sector. The hope is that enough negative expectations were baked into the stock that the broader impact will be minimal but we need to wait and see how it plays out. […]

September 25 Biotech Update

We did not get any big news to start the week even though I think many were expecting to see a PR from AXON to start the morning. This is likely to be another one of those trend days where the sector generally follows the broader market but perhaps with a little more strength as […]

September 21 Biotech Update

The sector did get some momentum with the news yesterday but it still feels like a grind that is in a holding pattern, although clearly not like the broader market that has done nothing. There is nothing new today, which might give us a better sense if there is an underlying bid in the sector […]

September 20 Biotech Update

We are starting to get some meaningful data this week and while I suspect it will have some broader upside today, I will be curious to see if the sector moves and maintains a move. It seems to me that everyone is really wanting to see the AXON data and if any data is going […]

September 18 Biotech Update

I have been looking around for real meaningful news this morning and there does not seem to be anything compelling. As such, I expect a trend day with the sector more or less trading in line with the broader markets. The sector seems to be close to another break out having bounced off the $85 […]

September 15 Biotech Update

It still looks to me that the sector is acting less like a sector and more like an aggregation of individual stocks. That is always true (it is not a stock market but a market of stocks) but usually there is a rising (or lowering) tide that raises (or lowers) all boats effect. I find […]

September 13 Biotech Update

The sector in general appears to be treading water at these levels but that seems to belie the larger moves under the surface. I think keeping these levels and having good news rewarded and bad news punished is a sign of the relatively healthy sector, especially heading into historically risky months for the market. 1. […]

September 11 Biotech Update

It is a strong start to the week (broader market) with the sector trudging along higher. There are some very strong moves under the surface but those are both higher and lower, so the net impact is a more modest move in the indices. A small move higher after a medical conference is a win […]

September 8 Biotech Update

The sector has been doing well but it seems to have been a bifurcated market with big winners and losers. The broader market seems to be listless which is not helping. My low conviction view is that the sector looks ready to lead another leg higher but we need broader market participation for it to […]

September 6 Biotech Update

We have some more news this morning in the sector that I will focus on today. In terms of generalities, it is nice to see positive news being rewarded and while this seems like a natural state of affairs, there was a time where good news was not rewarded. The ability of positive fundamentals to […]

September 5 Biotech Update

A relatively quiet start to the week (at least for the sector). North Korea remains a concern but despite the nuclear test the response of the US and South Korea remains blowing up dirt with their own missiles. At this point the risk that the US has a military response is minimal. Remember that it […]

September 1 Biotech Update

They say that the market never bottoms on a Friday and I wonder if the same is true of topping? The sector has clearly had a strong near term move and is due for a pause but would strength today be the near term top or is there more to go? Over the longer term […]

August 31 Biotech Update

The good news and move for the sector continues. In isolation the move higher seems a stretch in terms of the fundamental news that we have seen the past week. The news has been good but we have had weeks with better news and did not have this reaction. Clearly sentiment has changed in the […]

August 30 Biotech Update

The sector and perhaps even broader market look good. One of my fears about the risk of a government shut down and/or debt ceiling might be resolving to a certain extent. There seems to be a growing consensus to do a three month funding, debt ceiling hike, and hurricane Harvey relief in a single bill. […]