Mid-Cap Biotech Picks: Seasonal Rally Underway

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New Mid-Cap Biotech Picks

  • Momentum indicators for tracking and trading:ARKG and XBI.
  • All three recent mid-cap biotech picks are up since end of May.
  • Biotech sector is still way below early February highs.

Note from our May 21 post Better Trades Lie Ahead we expected a rally through ASCO till the end of July, seasonally good for biotech. Writing  in late May the technicals looked favorable based on our key momentum indicators,  the ARKG and XBI. This entry point would be supported by news and clinical data from ASCO in early June. The playbook at that time was to hold core large cap biopharma: ABBV, BMY, REGN and RHHBY, while seeking Mid and Small cap growth plays . Many Mid-Cap biotech stocks were hit hard after the February peak. We suggested several trades with a focus on three new mid-cap biotech picks.

Here is the performance for the month of June:  CRSPR Therapeutics (CRSP) $156.64 up 31.4%. Cryoport ,Inc (CYRX) $61.41 up 9.82%.and Veracyte, Inc.(VCYT) $40.04 up 2.54%.

CRSPR Therapeutics is a leading player focused on development of gene editing for transformative gene-based medicines. Cryoport is a life science services  Company providing temperature controlled logistics solutions. Veracyte is a genomic diagnostic company that has a testing platform for cytopathology analysis.

All three picks can be volatile but very tradable and should be considered as long term holds with expectations for growth, positive clinical data or M&A.


Disclosure: LONG ARKG, CRSP CYRX and VCYT.


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