Biotech Rally Moving Toward April Highs: ASCO And M&A Provides Underlying Support

Biotech Rally Gets ASCO and M&A Boost

Biotech stocks are pretty solid over two weeks probably anticipating ASCO news and helped by more M&A news. Since hitting a recent low of $258.90 on May 19 the IBB is up over 8% and 6% over five days to $279.77 yesterday. The XBI was strong out of the gate this morning up 2 % and up 7.64% over five days. The XBI is our favorite trading ETF during rallies. The market overall is lackluster with DOW down 0.7% but healthcare and the Nasdaq are holding green above the flatline.

JAZZ Pharmaceuticals (JAZZ) kept the M&A beat going with a $1.5B acquisition of Celator Pharmaceuticals (CPXX) for a promising leukemia (AML) orphan drug called Vyxeos. Celator is up 71% to $30 today. A Regulatory submission is planned for the drug which has breakthrough designation therapy by Q3 2016 . The Cellator/Jazz deal has a strong strategic fit with Jazz in the Hematology/Oncology area.

Immuno-Oncology Stocks Are Strong 

Second Generation Immunotherapies

CAR-T  (Chimeric antigen receptor Tcell) plays were up : BLUE up 2.49%, JUNO up 3.31%, KITE up 7.24%. These innovative gene therapy treatments are expected to release key clinical updates for leukemia and lymphomas at ASCO.

Many Big Movers Today-A Healthy Tape

Ariad Pharmaceuticals (ARIA) was back in play today up 7.8% on news of a trial  initiation for an oral EGFR/HER2 inhibitor in patents with Non-Small Cell Lung Cancer. Revenue estimates for the Company are $216M in 2016 and $258M for 2017 sales of Iclusig for treatment of leukemias.

Array Pharmaceuticals (ARRY) gained traction up 4.72% and 13.9% over five days on anticipation of ASCO data for colon cancer and melanoma.

Selected Rayno Biopharma large cap picks are up today: Abbvie (ABBV) up 0.38%, Bristol- Myers Squibb up 0.65% and Gilead Sciences (GILD) up 1.44%.

Alnylam Pharmaceuticals (ALNY) an emerging biopharma and leader in discovery and development of RNA therapeutics continued to soar up 6.15%. ALNY has a broad clinical pipeline in genetic medicines and cardio-metabolic diseases.

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