Biotech may be turning around now

AnotherJoe

Thanks BH, it just seemed to be larger than the normal daily movement of a % or so, I did notice the factsheet was out (and read it and watched the 2 min video) but there was nothing that made me think it was responsible for such a big change.

Just a "perfect storm" then

BrockStoker

The past few weeks has seen a significant selling off of biotech. I think the selling off was over-done, and we are seeing that reversing now. What has also helped is that Q1 results reporting has really kicked in this week, and there have been some welcome/favorable reports. In particular, Biogen reported very favorable results yesterday, which has helped buoy the whole sector. Tomorrow is also going to be an important day with Celgene revealing it's Q1 results, so expect to see big moves either way in the next few days.

If you look at IBB, which is generally considered to be a bellwether for biotech, you can see the line of resistance @ about 300, which IBB was toying with, but was unable to effectively breach a few weeks back.

http://money.cnn.com/quote/etf/etf.html?symb=IBB

Then we saw Trumps attempts to reform healthcare fall flat, which has hurt biotech since M&A activity in the sector has been sniffled - no company wants to M&A when there are question marks over the sector. So that has put the dampers on till there is more certainty. The sector needs M&A activity to kick-start it, so investors are now looking for two pieces to fall into place before we are likely to see biotech shine.

http://www.investopedia.com/news/biotech-ma-plunges-trump-attacks-drug-companies/

In the mean time, whilst I don't put too much faith in analyst ratings, here's something that is fairly encouraging for the sector which you might have missed:
https://www.streetinsider.com/Analyst+Comments/Credit+Suisse+Upgrades+PharmaBiotech+to+Overeight+(IBB)/12689993.html