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Big Moves in Biotechs
As of Jan. 31, 2025, two of our large-cap picks saw big moves of up to 5%. This was due to strong immunology revenues in AbbVie (ABBV) and the FDA approval of a non-opiate painkiller for Vertex Pharmaceuticals (VRTX).
Small- mid-cap trade movement: the IBB and XBI ETFs were flat for part of the week, but Natera (NTRA), Tempus AI (TEM), Twist Bioscience (TWST), and Avidity Biosciences (RNA) all moved up by over 1%.
Tough tariff talk seemed to kill the market rally, as the Russell 2000 moved down 0.9% .
Momentum Picked Up for the Health Science Sector
On Monday, we called for a trading bottom in healthcare stocks. We also saw momentum picking for two Health Science sectors: small- to mid-cap biotechs, and MedTech. Here is a look at these spaces on a year-to-date basis:
Major ETFs were doing well this week after some volatile sessions were buffeted by AI and tech stocks. Some of these funds include ARKG (up 15.8% at 27.31), IBB (up 5.86% at $139), XBI (up 4.65% at 94), and XLV (up 7.49% at 147.5).
The MedTech sector was also doing well, with the IHI ETF up 10.76% at $64.75.
We have summarized our trading list below, which has pre-screened stocks for financial and scientific parameters, as well as momentum. This is not a buy and hold list, but it is being used to develop an algorithm for identifying small- to mid-cap stocks with longer-term potential.
We currently hold the following MedTech stocks: Abbott Laboratories, Becton, Dickinson and Company, Boston Scientific, Illumina, Intuitive Surgical, and Stryker Corporation. We also hold two Health Science Funds: ARKG and PRHSX,
We currently hold the following stocks with good gains: Adaptive Biotechnologies, Catalyst Pharmaceuticals, CorMedix, Guardant Health, Structure Therapeutics, Supernus Pharmaceuticals Vericel Corporation, Veracyte.
We have recently gone long the following stocks: Absci Corporation, Cytokinetics, Incorporated, Denali Therapeutics, Protagonist Therapeutics, Avidity Biosciences, and Wave Life Sciences.
We have also traded many others profitably, including the following: BridgeBio Pharma, Exelixis, Natera, Geron Corporation, Tempus AI, and Twist Bioscience.
We often try to update the trades and sectors when there is volatility in the space.
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