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In May of 2021, we introduced you to three Mid-cap Life Science stocks that had good growth and M&A potential. 2021 is an unusual year for biotech with a “blow-off” February high in speculative small caps as can be seen with several ETFs like the XBI which peaked around $175 followed by choppiness and now trying to settle at the lows in the $125 range. All of our picks were favored by analysts because of their unique technology and growth potential. All had characteristics of “momentum” stocks. We can’t go into the details of why the speculative bubble collapsed but we thought small and mid-caps would return to favor by the end of Q4.

All of these stocks are volatile.

Cryoport, Inc. (CYRX) is our best pick of the three up over 50% since May because of EPS and top-line sales growth. It remains a hold but the stock has recently been weak because of dilution from a $350 M Convertible Debt Offering.

CRISPR Therapeutics (CRSP) is our worse pick down about 12% since May as clinical trial results have not lived up to the potential of gene therapy. We are still long but have cut back our position. Most gene therapy stocks are near their lows of the year. We did make money trading  EDIT and MGTX. Intellia Therapeutics (NTLA) is the outperformer in the group down 2.9% in six months but still up 139% YTD.

Veracyte (VCYT) is a unique genomic diagnostics Company focused on cytopathology for cancer, thyroid, and lung diseases. The stock is up over 35% in six months albeit in a choppy stock pattern. Recent financial results showed good revenue growth and the acquisition of HalioDx a lung cancer nasal swab test.

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Long all stocks mentioned.