The whole sector tanked, but yet I didn't see anything that would have caused it. There was a CVS article I believe but couldn't imagine it would have such an impact. As for the Tecifidera article, it's old news just reiterated. BIIB even factored it into it's guidance, which in my opinion is a complete sandbag.
The decline last week from ~$330 was due to an article about Tecfidera in the New England Journal of Medicine. The article didn't raise any new concerns, but it did reiterate existing concerns about Tecfidera and the risk of progressive multifocal leukoencephalopathy (PML). While the risk does exist, I think the issue is getting blown out of proportion.
Back to $315 this morning give me some hope I may break even this week and move to the positive territory!!
Sentiment: Strong Buy
Wow - thanks - I've been a day trader since 1997......I have made hundreds of thousands and will never work a reg. job again, but I have also had some big losses.....BIIB just looks like a good bet for a day trade, over & over.
that doesn't matter. when a bubble pops, everything goes down. Biogen was 1st to get clocked, rest of sector will follow. Don't be shocked to see biotech index down 20% in one day. The entire index.
There's correlation between rate cuts and Homebuilders. There's no correlation between rate hikes and Biotech.
Yahoo finance "According to Huang, there is no negative correlation between higher interest rates and biotech stock performance. The NBI actually outperformed the S&P 500 significantly during the period of interest rate hikes from June 1999 to June 2000. Although the NBI underperformed the S&P during the rate hike period from June 2004 to July 2006, Huang calculated only a weak correlation between the rate hikes and the NBI." Benzinga.
Sentiment: Strong Buy
In the short-term BIIB volatility will continue to be linked to its MS drug Tecfidera. Sales of the drug have slowed, which led to lower than expected quarterly revenue in the most recent earnings report. Tecfidera has been linked to two cases of a rare brain disease called progressive multifocal leukoencephalopathy (PML). Since BIIB reported earnings Novartis' MS drug Gilenya has also been linked to a case of PML. This actually helps take some of the negative attention away from Tecfidera, but it's hard to know how it will impact sales of Tecfidera. The bad news for Novartis may translate to good news for Biogen since Tecfidera has better efficacy than Gilenya. If Biogen makes a significant acquisition or gets acquired by another company then the Tecfidera issue becomes much less important and the stock goes higher. In the absence of an acquisition or a takeover the stock will languish until the next earnings report.
I have a feeling Biogen will be taken over. Biogen will stay in the low 300's for a while until a potential buyer is identified.
...he shouted, in all caps, like a self-absorbed teenager or someone brand new to computers. "Gee! Maybe If I type in all caps, people will think my posts are really important and valuable!" (it does the opposite, Halstead)
Jserper, I hear ya, but this wild price movement tends to strike fear in the hearts of many. "What if I buy shares here, and it drops AGAIN?" That feeling is SO common, and although it is an emotional response, it can often overrule logic and reasonable-risk decisions. I'm regretting having sold mg GILD position at $45, back when I thought it was getting heady! Oh, how myopic! I got back in later, but missed SO much meat in the middle!
Mbomfuzzbender, I agree with your assessment of the rate hike probability, but not about the effect it may have on the stock market. We've had huge growth in the stock market since its last big downturn, and the cadence is ripe for a burst. Conditions are different today than 2007, but still, a perfect storm may appear that we did not expect. I'm not going to surmise, for I have no crystal ball, but history often repeats, at least in a general sense. And the market is somewhat cyclic in its booms and busts as it claws ever higher, eventually, over the years.
Hopefully, all those who got crushed in BIIB's pullbacks and are under water right now have a lung-full of air until they pop back above the red zone. For short-term trading, how does one gauge the intra-day or daily volatility of BIIB? This one's choppy and unpredictable, IMO. GLTA but the shorts.
And your preference for all caps devalues your message completely. Did you know that? What are you, NEW? a teenager?