Biotechs Stalled at Resistance Given No Help From Nasdaq
Mixed Day in Biotech Favoring Large Caps
Political Drama Intervenes Again
The XBI traded down 1% to $95.94 at its key resistance level while the Nasdaq was down about the same and the QQQ down slightly more 1.36% to $171.71 near it’s all time high of $175.21. A rally at the first hour gave way to weakness perhaps related to the Tillerson exit, now replaced by CIA spy Chief Mike Pompeo, a Trump loyalist . With uncertainty from potential China tariff actions and more political drama, investors turned risk averse. We will need more economic data from retail sales and crude inventory tomorrow to offer clues on the future of the economy.
Bellwether mid-cap stocks were mixed with Tesoro (TSRO) taking a big hit down 4.6% near its recent 52 week low; despite an Evercore upgrade in February the Class Action suits may be taking its toll. Alnylam (ALNY) a leader in RNAi therapeutics was strong until late in the day near its 52 week high, but stayed green up 1.49% to $144.16. Two Large Cap stocks in the Rayno Biopharma Portfolio saw green Abbvie (ABBV) up 1.45% to $119.75 and Biogen (BIIB) up 3.34% to $283.24. The Abbvie (ABBV) pipeline was supported by Phase 3 data on Elagolix for uterine fibroids that met its endpoints. Regeneron (REGN) continued weak down 1.97% after announcing positive data Monday and price cuts for its new drug Praluent showed reduced risk of cardiovascular events in high-risk patients. Regeneron and Sanofi plan to cut the Cholesterol drug price in exchange for wider coverage from PBMs and insurance companies.
In a related article published in the WSJ, a WH panel calls for measures to lower cancer drug prices which can cost more than $100k/yr. The Report says cancer drugs aren’t delivering enough to justify costs.The panelists also stressed that the drug business should become more transparent to consumers so they can evaluate the products that they buy.