Biotech Investing Archives - Page 3 of 5

The Presidential Nominees Are Set

Posted on August 19, 2016 by Noah Kiedrowski

The political lines have been drawn, it’s Clinton verses Trump. I written several pieces evaluating the massive sell-offs in the biotech sector. Utilizing the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) as a proxy, I proposed a loose correlation between opportunistic political posturing by political front-runners and the chronic price suppression of IBB. I content that political posturing played a significant role in the sell-off of the healthcare cohort and more specifically biotech stocks. Drug pricing was used as a centerpiece as the scapegoat for political gains. Throughout this political process, this rhetoric has negatively impacted the sector. IBB fell from $401 in July of 2015 to $240 in February of 2016 or alternatively a 40% hit. This sell-off coincided with political rhetoric aimed at the collective cohort of healthcare and biotech companies. I strongly felt that these events were seasonal and would eventually subside without any significant impact to the underlying stocks within IBB. I felt this political induced sell-off presented a great buying opportunity after the 40% decline. I put my money where my mouth was by purchasing two tranches of IBB at a strike price of $250 in February and June during the market-wide sell-off and the Brexit, respectively. I feel that this is great entry point for any long-term investor that desires exposure to the biotechnology sector.

Are Drug Prices Really The Culprit?

In terms of the overall cost to the healthcare system, drugs comprise less than 10% of the pie. Allergan CEO Brent Saunders stated in an interview with Jim Cramer on Mad Money (Figure 1): Continue reading "The Presidential Nominees Are Set" →

IBB: Brexit Collateral Damage Provides Brief Buying Opportunity

Posted on July 8, 2016July 6, 2016 by Noah Kiedrowski

As Brexit wreaked havoc on international financial markets, it presented a brief opportunity to capitalize on the collateral damage fallout within the biotechnology cohort. This event may continue to offer entry points as the reverberations are felt throughout the markets. I didn’t factor in the possibility that a major economic power within the EU would vote to relinquish its membership and move forward as an independent nation. However as Brexit became reality, I utilized this opportunity to deploy capital in the biotechnology cohort via the iShares Biotechnology Index ETF (NASDAQ:IBB) as a long-term investor within the space. As the UK proceeded with its divorce from the EU, markets sold off in a meaningful way. Brexit introduced instability throughout the region thus negatively impacting financial markets abroad. I largely view the Brexit as an extraneous event unrelated directly to the biotechnology cohort; thus I utilized this brief opportunity to add to my position in IBB and may continue to add in periods of weakness. Continue reading "IBB: Brexit Collateral Damage Provides Brief Buying Opportunity" →

TIME Magazine Showcases Immunotherapy – Immunotherapy ETF Now Trading

Posted on April 1, 2016April 1, 2016 by Noah Kiedrowski

Introduction

Immunotherapy has garnered national attention recently by being showcased on the front cover of Time magazine. Immunotherapy has been an emerging and exciting therapeutic area that has experienced massive growth in terms of research and development expenditures and the sheer number of clinical trials. Immunotherapy ushers in a new class of potentially promising therapies by harnessing the body’s immune system to recognize and eradicate debilitating diseases, specifically cancer and chronic viral infections. This immunotherapy approach may inevitably result in a paradigm shift from traditional medical intervention. Immunotherapy possesses holistic attributes by harnessing the body’s immune system to contend with or in some cases prevent disease. In addition to the holistic aspects, immunotherapy has been shown to have a favorable side effect profile and best-in-class efficacy across many different disease states. These therapies may provide powerful technology to contend with a host of diseases, and in a future state, may potentially serve as a preventative technology similar to a traditional vaccine. Immunotherapy has evolved into many different classifications with differing modalities over the past few years, which has given rise to a growing number small-cap biotechnology companies with potential investment opportunities via an immunotherapy ETF. In late 2015, Loncar Cancer Immunotherapy ETF launched (NASDAQ:CNCR) and provides investors with an opportunity to invest in this unique cohort. Continue reading "TIME Magazine Showcases Immunotherapy – Immunotherapy ETF Now Trading" →

Political Posturing Continues To Pummel Biotech

Posted on March 7, 2016March 4, 2016 by Noah Kiedrowski

As the political cycle matures in 2016, the political posturing continues to plague the entire healthcare cohort. Utilizing the biotech sector and drug pricing as a scapegoat for political gains has translated into the sector posting sharp declines over the past year. Using the iShares Biotechnology Index ETF (PACF:IBB) as a proxy for the biotechnology sector, this cohort has fallen from $401 in July of 2015 to $240 in February of 2016 or alternatively a 40% decline. This sharp decline coincided with heated political rhetoric aimed at the collective cohort of healthcare and more specifically biotech-related companies. This cynical sentiment by political frontrunners was largely rooted in the pricing of drugs. It’s noteworthy to highlight that this specific segment of the industry (i.e. drugs) comprises less than 10% of the total cost of healthcare. As candidate threats via legislative action geared towards reining in the costs of drugs unfolded, these actions negatively reverberated through healthcare and biotech stocks alike. The political posturing surrounding potential plans to reign in drug costs are now largely priced into many stocks within the healthcare umbrella. I contend that after the roughly year-long political sell-off the biotech cohort looks attractive at these levels. Once the political cycle is complete later this year, these stocks will likely benefit from the mere absence of political headwinds. Taken together along with the difficulty of enacting any legislative action to regulate the industry this may represent a buying opportunity that’s been presented by extraneous political events. Continue reading "Political Posturing Continues To Pummel Biotech" →

Will Political Headwinds For Biotech Subside In 2016?

Posted on January 4, 2016 by Noah Kiedrowski

As the political cycle unfolded throughout 2015, the entire healthcare cohort posted shape declines, this was particularly true for the biotechnology sector. Using the iShares Biotechnology Index ETF (ticker IBB) as a proxy for the biotechnology sector, this cohort fell from $401 in July to $284 in September or alternatively a 29% decline. This shape decline coincided with heated political rhetoric aimed at the collective cohort of healthcare and more specifically biotech related companies. This cynical sentiment by political frontrunners was largely rooted in the pricing of drugs. As candidate threats via legislative action geared towards reining in the costs of drugs unfolded, these actions negatively reverberated through healthcare and biotech stocks alike. The political posturing surrounding potential plans to reign in drug costs are now largely priced into many stocks within the healthcare umbrella. I contend that after the recent sell-off the biotech cohort looks attractive at these levels. Once the political cycle is complete in 2016, these stocks will likely benefit from the mere absence of political headwinds. Additionally, as the candidate pools thin out many remaining candidates gradually move towards the middle to appease a broader audience. Taken together along with the difficulty of enacting any legislative action to regulate the industry this may represent a buying opportunity that’s been presented by extraneous political events. Continue reading "Will Political Headwinds For Biotech Subside In 2016?" →

Tag: Biotech Investing