4 Biotech Stocks That More Than Doubled In 2016

2016 has not been a great year for biotech stocks which were under intense pressure with issues like increasing political and media focus on high price tags for drugs and the changing competitive scenario weighing on the sector.
While there has always been dissatisfaction about the high prices of drugs, the issue picked pace last year in September when Hillary Clinton tweeted about “price gouging”. Clinton’s tweet was in response to news regarding a huge price hike (about 5,000%) taken by Turing Pharmaceuticals for a drug (Daraprim) that was approved by the FDA way back in 1953.

Needless to say, this caused a major furor considering growing concerns regarding the pricing and affordability of prescription drugs. Since then, drug stocks, especially biotechs, have found themselves under the scanner for price hikes and the high costs of important treatments.

Although the sector did react favorably to the surprise win of Donald Trump in the Presidential election in Nov 2016, investors were in for a rude shock with the President-elect recently saying that he does not like price increases. The NASDAQ Biotechnology index is down 19.1% year-to-date (YTD).

Medical - Biomedical and Genetics Industry 5YR % Return

(Click on image to enlarge)

Medical - Biomedical and Genetics Industry 5YR % Return

However, despite the immense pressure on the sector, there were some biotech stocks that bucked the trend and more than doubled in 2016. Here is a look at 4 such stocks.

CoLucid Pharmaceuticals, Inc. (CLCD - Free Report) : Cambridge, MA-based CoLucid is working on the development a molecule for the acute treatment of migraine. The company’s pipeline candidates utilize a new mechanism of action that could address the unmet needs of migraine patients, including those with cardiovascular risk factors or stable cardiovascular disease and those who are dissatisfied with existing therapies.

CoLucid’s shares shot up in Sep 2016 with the company presenting positive data from a late-stage study on its lead pipeline candidate, lasmiditan. CoLucid’s shares are up 331.9% YTD.

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