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Rayno Biopharmaceuticals Portfolio Winners July '12 YTD: ALXN,IMGN,PCYC,REGN,SGEN Etc.

Biotechnology Sector Remains Strong Despite High Valuations

The Rayno Biopharmaceuticals Portfolio is outperforming most of the biotech indices and ETF's with many winners over 50% YTD. The best trade for June was long Pharmacyclics(NASDAQ:PCYC) and short Medivation(NASDAQ:MDVN) for a net profit of 51%. In one of the best years since 1999 for the biotechnology sector our core picks- Alexion, Biogen, Regeneron and Seattle Genetics- have returned almost 300% since we began coverage on 2/2/09. Although there have been outliers in the sector lately (such as obesity stocks) which have overweighted ETF performance due to FDA approvals and favorable clinical news we believe our portfolio approach minimizes this volatility. The sector has also benefited from M&A trends and two of our portfolio picks have been acquired. Also favoring the sector has been its independence from economic events both in the U.S. and Europe. On the positive side the sector also benefits when NASDAQ outperforms so there can be a weighted hit on "Risk On " trading days.

 

 

2012   Price Original P Price %Ret Price Price % Ret
Summary   Jy'10 Recomm   Dec'10 2010 Apr'11 7/5/12 YTD  
                     
                     
Alexion ALXN 50.45 2/2/09 35 80.6 130 100.8 104 45 split
Albany Mol AMRI   2/10/11 4.68 added 4.32 2.67 -8.5  
Astex ASTX trade 12/27/11 1.63       2.07 9.8  
Amgen AMGN 51.7 2/2/09 55 54.9 0 54 74.5 16  
Biogen BIIB 49.42 2/2/09 48.5 67.1 37 73.25 144.3 31  
                     
Cephalon CEPH 55.95 2/2/09 76.5 61.7 -19 76.92 80.18 30 acquired
                     
Cubist CBST 20.7 2/2/09 21.5 21.4 -3 28.35 39.65 0  
Exelixis EXEL trade 9/2/10 3.3 8.21 148 11.12 5.93 25  
First Trust FBT 30.4 4/15/10 37.5 39.1 3 41.3 45.18 38  
Gilead GILD 34.9 2/2/09 51 36.2 -29 42.81 51.6 26  
iShares ETF IBB 76.6 2/2/09 70.5 93.4 32 101.1 133.95 28  
                     
Micromet MITI 6.28 2/2/09 4 8.12 103 5.46 10.91 272 acquired
                     
ImmunoGen IMGN New 12/22/11 12.4       17.6 52  
Optimer OPTR   2/18/11 11.8 added 13.8 16.15 32  
Regeneron REGN 21.6 2/2/09 17.5 32.8 82 45.43 121 118  
Seattle Gen. SGEN 11.85 2/2/09 9.5 15 57 15.72 25.9 55  
ViroPharma VPHM 10.88 2/2/09 12 17.3 44 20.05 23.25 -15  
                     
Paired Trade               Up  
Pharmacycl PCYC long 6/8/12 38.2       58.45 51  
Medivation MDVN short 6/8/12 86.8       95.43    
Click to enlarge

Disclosure: I am short MDVN, REGN.

Additional disclosure: Short Medivation and Regeneron as portfolio hedges only.