May 12 Biotech Update

The sector is being hit this morning, although it is really the market that is weak and taking the sector with it. Yesterday the sector did a good job holding up despite the weak market and hopefully we can extend that relative strength but the early selling seems broad based. Ideally we would like to […]

May 11 Biotech Update

It is a good start to the week which is interesting as we have little news and a lack of M&A. I was curious as to how the sector would respond if we did not have any more M&A announced this Monday and the answer is pretty good. I think that is a bullish signal […]

May 8 Biotech Update

I wish I had more time to write this week but it has been too busy. The sector is obviously doing well and perhaps we have bottomed but at the very least we are set for a relief rally. Perhaps if we can get some additional M&A Monday it will spark a nice rally into […]

May 6 Biotech Update

Well, we finally get another deal and it is pretty telling how the sector reacted. Obviously there is a tailwind but it is not universal and we need to see how it plays out today. There is a tug of war going on in the market and sector and it is amazing that the same […]

May 5 Biotech Update

So clearly the strength later in the day did not play out yesterday and it ended up being yet another day with a strong open and a move that was faded all day. This selling carried over into this morning but perhaps this move will be faded as well. The sector (and market) are stuck […]

May 4 Biotech Update

It is a decent start to the day with a positive open. The longer that we do not pullback the more pressure it will place on those who were short or in cash at the end of last week. My hunch is that a lot of investors were shaken out earlier in the week and […]

May 1 Biotech Update

What a difference a day makes. Yesterday nobody wanted to buy a biotech and there was nothing that could ever happen that could reverse the selling. A giant GILD beat was expected and would only lead to more selling. A funny thing happened along the way to the proverbial park. Obviously the selling has been […]

April 29 Biotech Update

This has to be a quick note as this morning is busy but clearly the market is teetering. The bounce this morning is nice but we need a lot more than a bounce to really make a believer out of investors. The silver lining is that the volume on those down days was very high, […]

April 28 Biotech Update

So it ended up being a bad start to the week with a significant drop straight down to support with follow through early this morning. The sector seemed to find some support at support levels yesterday but it felt tenuous. Keep in mind that we have yet to have the big scary correction this year […]

April 27 Biotech Update

The sector has to deal with both some negative headlines and the lack of any deals on Merger Monday but it is difficult to read too much into the action this morning as we are going to get a lot of earnings this week. So I would wait and see how we are at the […]

April 24 Biotech Update

Some news to talk about today with interesting implications and I will try to cover most of them. The sector seems to be lagging early despite some business development news but we also had a big miss by BIIB that might be acting as a headwind (the M&A rumor seem to save the day so […]

April 22 Biotech Update

Another busy day so I have to keep this very short as I am trying to squeeze this in between meetings. In general, the sector seems to be doing fine and modestly outperforming the market. It remains to be seen if this is a sustainable move or whether it is a bounce from new M&A […]

April 21 Biotech Update

A lot of news to cover and I want to get to it all, so maybe a little less detail and more topics today and I will circle back to the ideas over the next couple of days. In general, the sector is doing well with the deal flow news but I will talk more […]

April 17 Biotech Update

The sector is certainly weak to start the day and obviously this seems driven by the macro. It was not immediately clear to me the trigger for the selling. Was it renewed concerns over a Grexit? You would think by now investors are prepared for that potential and/or have been immunized by these repeated concerns. […]

April 15 Biotech Update

It is a busy day so I am going to try and keep this short but every time I write that it seems like I write the same amount if not more than usual. The sector basically looks in-line with the broader markets and large caps actually seem to be participating in the move higher, […]

April 14 Biotech Update

A weak start to the day that essentially appears to be a continuation from the late selling yesterday. It still seems to be the case that large caps are underperforming the SMID, which has been the case for awhile. I suspect that is going to be a difficult trend to break but for the long […]

April 13 Biotech Update

Happy merger Monday- well, happy Monday at least. The sector is off to a good start this week despite another dearth of deals this morning. It does worry me a little that the current expectation is that we will see mergers every Monday as the sector should ideally move on fundamentals and not quick merger […]

April 10 Biotech Update

A good opening to the sector and large caps but the move was almost immediately faded (especially the large caps). Yesterday ended better than the past, so perhaps the sector can recover and regain the lost ground but I still worry about this pattern of strong openings that are continually sold throughout the day. It […]

April 9th Biotech Update

The market is choppy this morning so it is difficult to read anything into the price action. I am growing slightly more constructive on the near term of the sector but that is a very low conviction view. While the sector bounced on support, I have a hard time believing that the sell off was […]

April 8 Biotech Update

It was actually a good morning for the sector with large and SMID caps doing well. While that is a good first step, we need these moves to not only stick but strengthen at the end of the day. Another fade would indicate that the selling pressure remains a headwind. The sector is in an […]