August 4, 2022
BIOINVEST NEWS: Good Medicine for Biotechs
Great Data, Awesome Sales, Monster Deals Yesterday; 100+% Premium Acquisition Today
Biotechs stocks were strong both yesterday and today due to several key fundamental events from sector leaders 1) ALNY’ s ATTR Data – Phase III heart data for ALNY (up 50%); 2) impressive and better than expected COVID-19 vaccine sales from Moderna’s Spikevax (MRNA) – $4.45 billion in Q2 revenues; and 3) Roche/Poseida (PSTX) – a large cancer deal between Roche and Poseida (up over 70%) for CAR-T therapeutics. Roche gave PSTX $110 million upfront and they also raised another $70 million in a public offering.
Today, we had the only key biotech catalyst missing from yesterday; a premium buyout as AMGN has pulled the trigger and is buying ChemoCentyx (CCXI) for an overnight 100+% premium.
MTSL recommended stocks are also participating in the broad two day biotech rally with TCRT up 40+% and PGEN up 30% on the Roche/Poseida deal and IONS up almost 20% in sympathy with the ALNY data.
Biotech stocks are poised to deliver outstanding returns as the underlying fundamentals have never been better. Yesterday’s positive news flurry; great data, awesome sales and monster deals combined with AMGN’s 100+% acquisition of CCXI are all good medicine for biotech investors and brightly illustrate the sector’s strong fundamentals. One of our Top Stock Picks for 2022 (MYOV) is about to gain an important regulatory approval that is likely to expand the label on an already approved drug that is experiencing a stellar launch already.
Technically, the XBI is showing signs of a breakout (see chart above based upon fundamentals (and not just short covering). The oversold group is just beginning what we believe is the start of a longer term fundamental recovery.