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Rod Raynovich
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Rod Raynovich is an entrepreneur and executive with a focus on life science companies and medical technology trends.He has over 30 years executive experience including Abbott and JNJ and has been involved three successful start-ups. He has a B.S, from Penn State University and an MBA from... More
My company:
Raygent Capital
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  • Alert: Broad Biotech Sell-Off ..ALXN, BMRN, GILD, INCY, VRTX, XBI Etc 0 comments
    Mar 21, 2014 11:18 AM | about stocks: XBI, GILD

    NASDAQ Down 0.29% at 11:11 a EDT

    Dow up 0.56% and S&P Up 0.39%

    The biotech screen was all red at the opening. It is not clear what is driving the sell-off except it coincides with the re-allocation to other sectors like financial and large cap tech stocks. Concern about rising interest rates from the FED meeting has shifted investors thinking toward sectors that would benefit from an improving economy. Healthcare stocks overall is the worse performing sector with the XLV down 0.63%. The XBI ($153.6)the S&P SPDR Biotech ETF is is down 3.9%.

    There is also concern about the froth in small cap biotech such as the IPO market where 26/46 new offerings in 2014 were biotech stocks. High fliers were in a broad sell-off today many of which are overweighted in theXBI: AMRI, ICPT, INCY, ISIS, LGND, NVAX, SGMO. As today is March option closing this could be having an effect.

    Also a Bloomberg article could be making an impact today as Congressional Democrats led by Henry Waxman are questioning the $84,000 pricing of the Gilead (GILD $72.9) HCV drug Sovaldi.

    In the meantime a huge winner is Endocyte (ECYT$27.17) is up 87% after positive data was released on a Phase 2b lung cancer study.

    This article will be updated over the weekend.

    Disclosure: I am short XBI.

    Additional disclosure: I am long Fidelity Select Biotech Fund (MUTF:FBIOX) and XLV; and short selected biotech stocks on a daily basis only as a hedge.

    Stocks: XBI, GILD
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