Re: Farmas USA
The Biotech Conundrum
Oct. 5, 2018 2:21 PM ET
Growth, biotech, small-cap, newsletter provider
Graycell Advisors and Prudent Biotech
Conclusion
We anticipate growing volatility for the biotechs in October as investors begin to scale down the risk exposure, particularly with the upcoming elections in November. This will affect small caps harder than larger-cap stocks. Consequently, we have scaled down the portfolio exposure in the Prudent Biotech Portfolio to 75% and the Graycell Small Cap Portfolio to 80%.
The November elections will not change the policy front dramatically, even with a change of control in Congress. But it can potentially raise the pressure on drug companies with more frequent hearings.
We anticipate the higher volatility to subside in November and December with a more favorable investing environment. We had earlier discussed the prospects for biotechs in the second-half outlook, Biotechs Building Momentum.
There are a number of promising biotech companies and some of them, which may be now or in the past part of our model portfolios, include Vertex Pharmaceuticals (VRTX), Ligand Pharmaceuticals (LGND), REGENXBIO (RGNX), Sarepta Therapeutics (SRPT), Neurocrine Biosciences (NBIX), Endocyte (ECYT), Arrowhead Pharmaceuticals (ARWR), Amarin (AMRN), Viking Therapeutics (VKTX), Intercept Pharmaceuticals (ICPT), Endo International (ENDP), Fate Therapeutics (FATE), ProQR Therapeutics (PRQR), Adaptimmune Therapeutics (ADAP), Reata Pharmaceuticals (RETA), Ra Pharmaceuticals (RARX), Arena Pharmaceuticals (ARNA), and Affimed (AFMD).
Author's note: As always, kindly do your own due diligence.
Opinions, where expressed, can change with time and new information.
https://seekingalpha.com/article/4210127-biotech-conundrum