The bloodbath continued for biotech stocks Monday as the J.P. Morgan Healthcare Conference kicked off with massive deals for Pfizer (PFE) and Bayer (BAYRY).
Pfizer is teaming up with Beam Therapeutics (BEAM), Codex DNA (DNAY) and Acuitas Therapeutics. The partnerships are around base editing — a new form of gene editing — and messenger RNA. Meanwhile, Bayer said it would partner with Mammoth Biosciences to study gene-editing approaches to liver diseases.
But the deals didn't spark biotech stocks. The SPDR S&P Biotech ETF (XBI) slipped 1.3% near 101.70, continuing a five-day decline. In fact, the only day the exchange-traded fund has gained in 2022 was on the first day of trading, Jan. 3.
Some of the biggest dives came for biotech stocks that beat fourth-quarter expectations.
Biotech Stocks: Preannouncements Mixed
Exelixis (EXEL) stock toppled 6.5% near 17.50 after the company pre-reported about $300 million in sales of its cancer treatment, Cabometyx. That narrowly beat forecasts for $298 million, RBC Capital Markets analyst Kennen MacKay said in a report to clients.
Full-year guidance for $1.325 billion to $1.425 billion in Cabometyx sales "straddles Street estimates for $1.4 billion and adds confidence to Cabo's growth trajectory after a commercially disappointing third-quarter and surprising 6% quarter-over-quarter decline from the second quarter," he said.
Still, the biotech stock dropped below its 50-day moving average, according to MarketSmith.com.
At the same time, Novocure (NVCR) tumbled 4.4% near 63.30. Novocure sells a wearable treatment for brain and lung cancers. Fourth-quarter growth was flat, but beat expectations at $133.2 million, Wedbush analyst David Nierengarten said in his note to clients.
Blueprint Medicines (BPMC) disappointed biotech stock investors when it preannounced $20 million in quarterly sales of cancer drug Ayvakit. Leerink analyst Andrew Berens says the Street called for $27 million. The news put the biotech stock at its lowest point since August, down 5.6% near 86.30.
Allogene (ALLO) shares are fell 12% near 11.90 after the Food and Drug Administration gave it permission to restart its cancer studies. The company is editing donated cells, directing them to fight cancer, before infusing them into patients.
The news should have been bullish for the biotech stock, but shares hit a record low.
Biocryst Shares Rocket
One notable divergence in the biotech stock pattern was from Biocryst Pharmaceuticals (BCRX). Shares retook their 200-day line after sales of the company's drug, Orladeyo, beat expectations. Biocryst pre-reported $45.6 million in fourth quarter sales. Biocryst stock soared 21.2% near 14.
In 2022, the company expects "no less than $250 million" in sales of Orladeyo, a hereditary angioedema drug. Hereditary angioedema is a swelling disorder. Peak sales are now expected to be $1 billion, Piper Sandler analyst Christopher Raymond said in a report.
He has an overweight rating on the biotech stock.
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