Market Overview

JMP Sees A 'Negative Market Tone' In Biotechnology

JMP Sees A 'Negative Market Tone' In Biotechnology

In a new report, analysts at JMP Securities focused on stocks and recent developments in the world of biotechnology. Overall, much of the sector has been under pressure recently from a negative market tone and “puzzling” Endocrinology and Metabolic Drug Advisory Committee (EMDAC) discussions.

EMDAC Commentary

JMP analyst Michael King, Jr. was surprised by some of the recent actions and statements made by the EMDAC. King described a perceived lack of consideration on the part of panelists when it came to some important issues.

“The explanations given by the FDA, specifically concerns over mixed studies of fibrates and the negative studies of CTEP inhibitors and niacin, strike us as disingenuous, at best,” King wrote.

The EMDAC sent Amgen, Inc. (NASDAQ: AMGN) and the partnership of Sanofi SA (ADR) (NYSE: SNY) and Regeneron Pharmaceuticals Inc (NASDAQ: REGN) home with a recommendation in favor of all indications they sought, except for the largest one (patients with mixed dyslipidemia intolerant to statins).

King believes that this decision set a “negative tone” and has certainly influenced biotech stocks.

Related Link: Big Biotech Stocks See Declining Short Interest

Other News

Recent news from the American Diabetes Association was generally good, especially regarding Merck & Co., Inc. (NYSE: MRK)’s TECO study.

Data presented at the European Hematology Association (EHA) conference was also positive for names like Acceleron Pharma Inc (NASDAQ: XLRN), Alny Pharmaceuticals, Inc. (NASDAQ: ALNY), Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA) and Karyopharm Therapeutics Inc (NASDAQ: KPTI).

Stock Picks

JMP believes that there are plenty of opportunities remaining in the biotech space for selective investors. The group of biotech stocks that JPM currently rates Market Outperform includes the following oncology companies:

  • Celgene Corporation (NASDAQ: CELG)
  • Incyte Corporation (NASDAQ: INCY)
  • Medivation Inc (NASDAQ: MDVN)
  • Pharmacyclics, Inc. (NASDAQ: PCYC).

Image Credit: Public Domain

Posted-In: American Diabetes Association Endocrinology and Metabolic Drug Advisory Committee European Hematology AssociationAnalyst Color Biotech FDA Top Stories General Best of Benzinga


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