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Big Moves in Biotechs

• As of Jan. 31, 2025, two of our large-cap picks saw big moves of up to 5%. This was due to strong immunology revenues in AbbVie (ABBV) and the FDA approval of a non-opiate painkiller for Vertex Pharmaceuticals (VRTX).
• Small- mid-cap trade movement: the IBB and XBI ETFs were flat for part of the week, but Natera (NTRA), Tempus AI (TEM), Twist Bioscience (TWST), and Avidity Biosciences (RNA) all moved up by over 1%.
• Tough tariff talk seemed to kill the market rally, as the Russell 2000 moved down 0.9% .

Momentum Picked Up for the Health Science Sector

On Monday, we called for a trading bottom in healthcare stocks. We also saw momentum picking for two Health Science sectors: small- to mid-cap biotechs, and MedTech. Here is a look at these spaces on a year-to-date basis:

• Major ETFs were doing well this week after some volatile sessions were buffeted by AI and tech stocks. Some of these funds include ARKG (up 15.8% at 27.31), IBB (up 5.86% at $139), XBI (up 4.65% at 94), and XLV (up 7.49% at 147.5).
• The MedTech sector was also doing well, with the IHI ETF up 10.76% at $64.75.

We have summarized our trading list below, which has pre-screened stocks for financial and scientific parameters, as well as momentum. This is not a buy and hold list, but it is being used to develop an algorithm for identifying small- to mid-cap stocks with longer-term potential.

• We currently hold the following MedTech stocks: Abbott Laboratories, Becton, Dickinson and Company, Boston Scientific, Illumina, Intuitive Surgical, and Stryker Corporation. We also hold two Health Science Funds: ARKG and PRHSX,
• We currently hold the following stocks with good gains: Adaptive Biotechnologies, Catalyst Pharmaceuticals, CorMedix, Guardant Health, Structure Therapeutics, Supernus Pharmaceuticals Vericel Corporation, Veracyte.
• We have recently gone long the following stocks: Absci Corporation, Cytokinetics, Incorporated, Denali Therapeutics, Protagonist Therapeutics, Avidity Biosciences, and Wave Life Sciences.
• We have also traded many others profitably, including the following: BridgeBio Pharma, Exelixis, Natera, Geron Corporation, Tempus AI, and Twist Bioscience.

We often try to update the trades and sectors when there is volatility in the space.

(Click on image to enlarge)

(Click on image to enlarge)

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