Biotech backs down in 2Q19

Biotech stocks are down across the board in 2Q19 after 1Q19 gains

In a reversal from 1Q19, biotech stocks across all market cap tiers fell in the second quarter, leading to a total loss of $22.3 billion. However, the year-to-date change in market cap remains well in the black with a net gain of $160.7 billion.

Large cap companies valued at $10 billion or more represented the best performing tier of the quarter, losing a median of 1%, and $2.5 billion in market cap.

Leading the group was Hansoh Pharmaceutical Group Co. Ltd., which popped after its Hong Kong IPO in mid-June to close the quarter up 45%, at HK$117.8 billion ($15.1 billion).

Following Hansoh in the large-cap tier was Exact Sciences Inc., which gained 43% in the quarter to a valuation of $15.3 billion. In April, it announced revenues and testing volume for its Cologuard colorectal cancer screening test had increased 79% in 1Q19 over the prior year to $162 million and 334,000 tests. In May, Exact reported data demonstrating 92% sensitivity and specificity for a new pancreatic cancer screening test, and on June 26 it opened a new lab in its hometown of Madison, Wisc. which will allow it to perform up to 7 million tests a year.

At the bottom of the $10 billion-plus group was Teva Pharmaceutical Industries Ltd., which lost 41%, ending the quarter at $10.1 billion. Its share price has been losing steam since a May 11 story in the New York Times said Teva and other drug manufacturers conspired to inflate

Read the full 2448 word article

How to gain access

Continue reading with a
two-week free trial.