Medical-Biotech Reviewed Apr 17 Unchanged at ** (Slightly Underperform)
Sector Ratings by Briefing.com
Comment: Not much has changed since our last report a couple months ago. The industry, which has a history of boom and bust periods, is unfortunately suffering through the latter right now. Year-to-date, the Biotech Index (BTK) has shed 17%. Though oversold short-term technicals and some major chart supports suggest that the sector could enjoy a modest near-term bounce, we would need to see the index break above the 550 level before altering our intermediate-term bearish outlook. Given ongoing concerns over the less accommodating FDA, high-profile clinical setbacks, and the slowdown of capital into cash-needy industry, difficult to make a compelling case for a sustained recovery over the next couple of quarters. Seasonally, this is also not the best period for the industry. Consequently, Briefing.com maintains its underperform rating. Long-term, we remain bullish on the group as demographics, changes in technology, merits of the collaborative model and record number of drugs/therapies in the latter stages of development, point to tremendous promise.
Stocks: Abgenix (ABGX), Affymetrix (AFFX), Avigen (AVGN), Biogen (BGEN), Celera (CRA), Cell Genesys (CEGE), Celgene (CELG), Cephalon (CEPH), Chiron (CHIR), Curagen (CRGN), Gene Logic (GLGC), Genentech (DNA), Genome Therapeutics (GENE), Genzyme (GENZ), Gilead Sciences (GILD), Human Genome Sciences (HGSI), ICOS Corp (ICOS), IDEC Pharmaceuticals (IDPH), Idexx (IDXX), Incyte Pharmaceuticals (INCY), Isis Pharmaceuticals (ISIP), Ligand Pharmaceuticals (LGND), Luminex (LMNX), Medarex (MEDX), Millennium (MLNM), Myriad Genetics (MYGN), Onyx (ONXX), Orchid BioScience (ORCH), Protein Design Labs (PDLI), Regeneron (REGN), Sepracor (SEPR), SuperGen (SUPG), Vical (VICL). |
