Small Cap Biotechs Perk Up On Dealmaking

  • All of our July 5 Picks are doing well but CCXI is up 88%.
  • As we have written many times the XBI is the momentum indicator for small cap strength.
  • All of these picks are volatile.

We are just back from a two-week vacation so we’ll be playing catch-up for a week or so. But as you can see in the chart below most of our small cap biotech picks are doing well. The Amgen $4B deal for ChemoCentryx has provided near term catalyst for these small cap biopharmas. ChemoCentryx has a recently approved drug for a rare immune system disorder.

And yesterday a report emend saying  Pfizer is planning to buy Global Blood Therapeutics (GBT). for about $5B. We have recently turned bullish on more speculative small cap biotech stocks . With M&A picking up we would think smaller deals make sense for large cap biopharma to expand pipelines and complement technology.

We have written about small and mid cap biotech trades recently so check previous articles.

Small Cap Life Science Picks as of JY 5

    Initial              
COMPANY Ticker PRICE Price Mcap W/C* ANALYST Perform Perform  
    7/5/22 8/6 $B -000- RATING % MO. % Week  
                   
ChemoCentryx CCXI 26.85 50.52 3.6 0.2 1.6 88.16 113.89 Buyout $3.7B
CRSPR CRSP 70.6 81.4 6.31 2.15 2.2 15.3 8.53  
Cryoport CYRX 33.97 39.4 1.95 0.62 1.6 15.98 5.91  
Evolent Health EVH 32.16 35.74 3.27 0.09 1.4 11.13 5.15  
Mirati MRTX 72 86.56 4.81 1.2 1.9 20.29 34.41  
Moderna MRNA 155.54 186.84 73 6.9 2.5 20.12 13.86  
Quidel/Ortho QDEL 100.41 92.2 6.71 1.6 2 -8.18 -9.64  
Veracyte VCYT 23..41 27.9 2 0.175 2 19.18 5.92  
                   
FT NYSE Arca FBT   149.25       5.66 6.5  
iShares IBB   131.44       7.03 5.93  
SPDR S&P Bio XBI   92.3       13.96 13.77  
SPDR Health XLV   131.45       1.95 -0.72  
                   
iShares Russell 2 IWM   190.8       10.4 1.9  
   

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Small Cap Biotech Stocks Are Trending Well
Small Cap Biotechs Regain Momentum

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