Biotech Stocks Gain Momentum in a Major Rotation
SMID Biotech Stocks, as tracked by the XBI, are up 3.65% on Monday and close to a new five-year high
AbbVie bolsters its immunology portfolio with the acquisition of Apogee Therapeutics (APGE) for about $10.9B.
Broad momentum in many SMID biotechs portends a good week.
TECHNOLOGY stocks are exhausted and taking a rest today as biotech stocks get some deserved attention. Our SMID Trading list showed a lot of green screen helped by the XBI breaking out up 3.65% to $145.86. The equal-weighted small-cap State Street SPDR S&P Biotech ETF(XBI) is up 10.79% over 4 weeks and 19.63% YTD. The IBB was also up 1.94% YTD, and the iWM helped up 0.88%.
Many of our SMID Biotech picks gained strength: ABSi up 13.36%, COGT up 3.76%, DNTH up 5.92%, PTCT up 2%, PTGX up 1.92%, RCUS up 12%, RNAC up 3.3%, and Xencor (XNCR) up 10.84%. There was no news on XENCOR, but with a Market Cap of about $1B and a strong cash position of $6/sh and a broad pipeline of clinical-stage engineered antibodies for cancer and autoimmune disease, prospects look good for a partner or milestone data.
AbbVie (ABBV) gained 6.25% on news of the acquisition of Apogee Therapeutics, strengthening their portfolio of anti-inflammatory products for atopic dermatitis and asthma. AbbVie’s current immunology portfolio includes $7.3Bin sales from Q1, including drugs Skyrizi and Rinvoq.
We will update many of our SMID trading stocks this week, so stay tuned. AS of 10:20 a.m. EDT many of our SMID biotech stocks are up 2% and more. There, IBB is up 4% over 5 days.
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