US stocks have had an incredibly rough time in the market this week. Mid last week, the Federal Reserve made a statement that they would not be aggressive in increasing interest rates. While the lack of aggression made investors happy short term, it seems as though reality set in early this week as the Dow Jones, S&P 500, and NASDAQ all fell dramatically throughout Monday, Tuesday and Wednesday. While yesterday was still a bit rocky, it seems like we’re seeing a great recovery in the market today. Here’s what’s going on…
BioTech Stocks Are Bouncing Back
Here are a few stocks I watch closely that seem to be doing pretty well today…
Orexigen Therapeutics, Inc. (NASDAQ: OREX)
The News – There’s been quite a bit of news surrounding Orexigen lately. Recently, a test showed that their diet pill could have heart health benefits; but they released the data earlier than the FDA would have liked. In other news, there has been an investigation launched on behalf of OREX investors, and the company received approval for Mysimba. Currently (11:27), Orexigen stocks are trading for $7.62 per share after a gain of 5.16% so far today.
Outlook – I think we’re going to see long term growth from OREX. While the small-cap biotech market in general will experience a bit of volatility, the company continues to innovate and find new ways to help people live more healthy lives.
MannKind Corporation (NASDAQ: MNKD)
The News – MannKind has gotten a bit of a bad reputation recently thanks to an unfounded downgrade from Goldman Sachs. I’ve written quite a bit about this; so, as to not bore you with what you already know, we’ll pass the topic. If you’d like to learn more, click here. In more recent news, it seems as though analysts are starting to change their opinions of Afrezza (an inhaled insulin made by MannKind) based on physician feedback. Who would have thought? Once again, bight it GS! Currently (11:33), MNKD is trading at $5.22 per share after a gain of 2.05% so far today.
Outlook – As I’ve said in past posts, I’m expecting great things from MannKind. As most people do, I have family members with diabetes. Those family members would much rather have an inhaled insulin that’s more stable than an injected insulin any day. That being said, I think MannKind stocks will soar in the long run.
Intercept Pharmaceuticals Inc (NASDAQ: ICPT)
The News – Intercept Pharmaceuticals are seeing gains as a target price increase from Deutsche Bank; bringing the current target price from the bank to $400. The reason the bank provided for the upgrade is as follows…
“Genfit announced top-line results from the Golden trial in NASH patients. The trial did not hit on the prespecified endpoint due to higher than expected placebo in early NASH patients. There was no effect seen on fibrosis histology at 52 weeks. We think that OCA’s profile in NASH pts with fibrosis (where ICPT has breakthrough status) is strengthening relative to the GFT-505. We also think there is less risk via less competitive and regulatory risk. We are increasing OCA’s peak share in NASH F2/F3 population to 65% vs. 50% before and lowering the discount rate to 12.5% from 14%. Reiterate Buy and new TP is $400.”
Currently (11:42), ICPT is trading at $288.50 per share after a gain so far today of 2.06%.
Outlook – ICPT is another great stock for long term growth. However, this one isn’t going to be as susceptible to volatility as the smaller biotech options.
Gilead Sciences, Inc. (NASDAQ: GILD)
The News – Gilead sciences has seen all good news recently. While none of it is very new, the stock has recently been named one of the top 10 biotech stocks for active traders in 2015. Currently (11:46), GILD is trading at $101.79 per share after a gain of 0.71% so far today.
Outlook – Gilead Sciences is the world leader with regard to both hepatitis C and HIV treatments. If you can’t find value in that, I’m not sure where you can. This one is a long term bull in my opinion!
Other Notable Gains Today
All quotes below were taken at 11:52.
BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) – Currently trading at $14.70 per share after a gain of 12.72% so far today.
Novavax, Inc. (NASDAQ: NVAX) – Currently trading at $8.14 per share after a gain of 7.32% so far today.
BG Medicine, Inc. (NASDAQ: BGMD) – Currently trading at $0.99 per share after a gain of 6.44% so far today.
NewLink Genetics Corp (NASDAQ: NLNK) – Currently trading at $2.93 per share after a gain of 5.99% so far today.
Cempra Inc (NASDAQ: CEMP) – Currently trading at $32.54 per share after a gain of 5.01% so far today.
Amarin Corporation plc (ADR) (NASDAQ: AMRN) – Currently trading at $2.36 per share after a gain of 4.42% so far today.
ISIS Pharmaceuticals, Inc. (NASDAQ: ISIS) – Currently trading at $64.16 per share after a gain of 4.92% so far today.
Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) – Currently trading at $31.69 per share after a gain of 4.35% so far today.
ZIOPHARM Oncology Inc. (NASDAQ: ZIOP) – Currently trading at $11.43 per share after a gain of 2.88% so far today.
Know Of Any Others?
Do you know of any other biotech stocks that are showing strong gains today? Let us know in the comments below!