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Biotech Forum Daily Digest - Biotech Fritters Away Some Gains. 3 FDA Calendar Events In July

Jul. 03, 2017 11:49 AM ETALKS, AVEO, CARA, DVAX, EGRX, OCUL40 Comments


  • Biotech frittered away a decent portion of a big rally last week as the second quarter came to an end but remains above previous resistance levels.
  • Cara Therapeutics suffers a trial setback but analysts maintain their faith.  AVEO Pharmaceuticals complete a huge month.
  • All the other notable news, events and analyst ratings from across the sector are below.

A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.” ― Milton Friedman

Biotech spent a good portion of the last week of the second quarter and first half of the year frittering away a good part of last week’s huge surge in the sector. Some of this might have been related to ‘window dressing’ by fund managers as well as some profit taking after a 10% rally in this long time beaten down part of the market.

However, the major indices remain significantly above previous upward resistance levels that were in place since December of 2015 before being shattered the previous week. As long as that remains the case, it is probable that the most likely direction of the sector is up.

There is a good technical piece on Benzinga outlining how the iShares Nasdaq Biotechnology ETF (IBB) jumped from ~290 to ~323 in four trading days the previous week on large volume. The article speculates that if biotech can hold previous resistance levels and get back up to 323, the next stop could be slightly over 340 on a technical level.

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After a huge run over the past year, Cara Therapeutics (CARA) finally suffered a significant setback. Its lead candidate CR845 flopped against a key endpoint on pain for osteoarthritis in all three dosages within a late stage trial. The stock was down some 40% in trading on Friday as a result of this disappointment.

Positive changes continue to be underway at the FDA under new leadership. Its new head vowed

This article was written by

Bret Jensen profile picture
Finding tomorrow's big winners in the lucrative biotech sector

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Analyst’s Disclosure: I am/we are long AVEO, CARA, DVAX, EGRX, OCUL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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