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Are Biotechs poised for a re-run of last year's action? Last year Biotechs had a nice Spring rally (fueled by CEPH's Myotropin data). The sector faded and by December it was depressed below Sping levels. CNTO looked at interim data on Reopro and the results were so positive that the trials were halted (it would be unethical to continue giving the placebo). The news ignited the sector (on Dec 20) and most Biotechs produced impressive moves through the end of January (my favorite LGND went from 8 to 13 1/2 in less than a month).This year Biotechs are severely depressed. IBD's Medical-Biomed/Genetics group remains below Jan 1 levels (2.7%). Today it is ranked 181 (out of 197 indutry groups). Biotechs have a record number of drugs in advanced clinical trials and several major conferences are slated through January. Will positive clinicals start another rally which can dove-tail with a January effect? I'm predicting that LGND will lead the charge (they will be looking at interim clinicals for phase III trials on Targretin and Panretin). Any other candidate Biotechs to ignite a major rally? |
