Cancer Stocks Weekly Review: Strike Three!
by Alan J. Brochstein, CFA
AB Analytical Services
After plunging in the week following ASCO and then underperforming the following week, cancer stocks were hammered yet again. The list below, with data from StockVal, is comprised of domestic companies primarily with market caps in excess of $50mm, ranked by the return this past week. If the reader believes that there are erroneous inclusions or exclusions, feel free to let me know.
The 14 double-digit declines exceeded the 12 that plunged immediately following the ASCO meeting, with just a single double-digit gainer. The median return of -4.2% and the average return of -4.9 trailed the S&P 500 significantly (-2.3% and -3.0% respectively). Clearly, cancer-related stocks have been very weak this month and are now lagging the market, on average, for the year-to-date.
Vical (VICL) was the only double-digit gainer on the week. Though it is still down year-to-date, it is showing good momentum over the past quarter. While
the company has several programs devoted to treating cancer, the news that drove the stock this week wasn’t related to them but rather a successful Phase 2 trial for an outlicensed drug to treat ischemia. On the downside, Coley (COLY) stood out, plunging over 50% on Pfizer’s (PFE) decision to exit development of a COLY drug in Phase 3 (not effective). Zila (ZILA), mentioned in this negative part of the report now on what seems like a regular basis, continued its decline toward the sub-$1 zone following the Q3 earnings release. Allos (ALTH) suffered a failed trial for a brain cancer drug. Genvec (GNVC), another regular in this section of the report, barely retains its positive year-to-date performance. This one is probably worth a look, as it is sitting on top of very strong support at 2.25-2.50 area. Several other double-digit decliners remain positive year-to-date, including Trubion (TRBN), IDM Pharma (IDMI), Dendreon (DNDN), Onyx (ONXX), Arqule (ARQL) and Idera (IDP).
Showing Mo
Parameters: 4-week outpeformance (S&P 500) of 3% or more, 13-week outperformance of 10% or more and Price Momentum Index of <2
(Note that several of these are in the process of being acquired)
Potential Rebounds
Parameters: 4-week outperformance of >5%, 13-week underperformance of <5% and Price Momentum Index of <0.
RELATED READING:
- Cancer Stocks Weekly Review: Sliding Again!
- Cancer Stocks Weekly Review: Post-ASCO Slide
- Cancer Stocks Weekly Review (6/03/07)
AB Analytical Services is a regular contributor to BioHealth Investor
_________________
AB Analytical Services
After plunging in the week following ASCO and then underperforming the following week, cancer stocks were hammered yet again. The list below, with data from StockVal, is comprised of domestic companies primarily with market caps in excess of $50mm, ranked by the return this past week. If the reader believes that there are erroneous inclusions or exclusions, feel free to let me know.
The 14 double-digit declines exceeded the 12 that plunged immediately following the ASCO meeting, with just a single double-digit gainer. The median return of -4.2% and the average return of -4.9 trailed the S&P 500 significantly (-2.3% and -3.0% respectively). Clearly, cancer-related stocks have been very weak this month and are now lagging the market, on average, for the year-to-date.Vical (VICL) was the only double-digit gainer on the week. Though it is still down year-to-date, it is showing good momentum over the past quarter. While
the company has several programs devoted to treating cancer, the news that drove the stock this week wasn’t related to them but rather a successful Phase 2 trial for an outlicensed drug to treat ischemia. On the downside, Coley (COLY) stood out, plunging over 50% on Pfizer’s (PFE) decision to exit development of a COLY drug in Phase 3 (not effective). Zila (ZILA), mentioned in this negative part of the report now on what seems like a regular basis, continued its decline toward the sub-$1 zone following the Q3 earnings release. Allos (ALTH) suffered a failed trial for a brain cancer drug. Genvec (GNVC), another regular in this section of the report, barely retains its positive year-to-date performance. This one is probably worth a look, as it is sitting on top of very strong support at 2.25-2.50 area. Several other double-digit decliners remain positive year-to-date, including Trubion (TRBN), IDM Pharma (IDMI), Dendreon (DNDN), Onyx (ONXX), Arqule (ARQL) and Idera (IDP).Showing Mo
Parameters: 4-week outpeformance (S&P 500) of 3% or more, 13-week outperformance of 10% or more and Price Momentum Index of <2
(Note that several of these are in the process of being acquired)
Potential Rebounds
Parameters: 4-week outperformance of >5%, 13-week underperformance of <5% and Price Momentum Index of <0.
RELATED READING:
- Cancer Stocks Weekly Review: Sliding Again!
- Cancer Stocks Weekly Review: Post-ASCO Slide
- Cancer Stocks Weekly Review (6/03/07)
AB Analytical Services is a regular contributor to BioHealth Investor
_________________
posted by Nico at
4:57 PM
1 Comments:
Investing in cancer drugs can be highly profitable. However, finding your way through the jungle of clinical trial results and new compounds is extremely challenging. I find the following site helpful that contains free info on drugs such as Avastin, Tarceva, or Nexavar:
www.targetedtherapeutics.com
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