Another Good Week For Biopharma And Diagnostics Stocks: Innovation Is Driving Gains

  • Potential coronavirus solutions create many big winners: see our daily tracking “Volatile Coronavirus Plays”.
  • Coronavirus stocks we track near 52 week highs: CEMI GNMK TDOC REGN INO.
  • Microcap stocks with news are getting frothy as speculation picks up.
  • Biotech ETFs are strong:  IBB up 8% YTD at $126 up 19.44% 12 mos.; XBI up 2% YTD at $97, up 13% 12 mos.

As the market moves with COVID epidemiological data many stocks took at hit on questionable or incomplete news from the WHO on a Clinical study from China on Remdesivir; Gilead Sciences (GILD) stock took a hit on Thursday from the $82 level but recovered Friday to the $79 level, but it is still the big hope for a coronavirus antiviral therapy. The market remains volatile not only on company news but on dire economic news which at times makes the stock market seem disconnected from the pandemic reality.

  • A big earnings week is coming up!

Nonetheless large cap biopharma stocks have been strong because of a strong balance sheet, reliable revenue and dividends. LLY VRTX and EGN are trading near 52 week highs and we favored the following over 12 mos: ABBV GILD RHHBY and both ETFs. Roche is unique in having strength in both diagnostics and therapeutics.

The diagnostics field is much more broad and volatile with many smaller players like Genmark Diagnostics one of our top picks along with Teledoc (TDOC). The large cap diagnostics stocks we favor are ABT and RHHBY although Illumina (ILMN) is a core holding because of their sequencing capabilities.There are many smaller cap diagnostic and biotech companies that are soaring on their diagnostics capabilities and we have been only tracking a few. Keep in mind that we are at an early stage of determining the accuracy of antibody tests and their clinical significance. The sectors is very hot and some of the companies are raising funds on a press release.

Most gene therapy stocks were up on Friday on their deal potential as well as regulatory milestones in 2020. If you area serious biotech trader you have to hold a gene therapy stock and they are way off 3 year speculative highs. Here are some recent movers: c. Here is our Gene Therapy Stock Review from June 2019.

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Disclosure: None.

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