Another Five Days of Biotech Stocks GRINDING Along

Recap - No one has the exact answer, but Mr. King’s post-JP Morgan musings from earlier this year seem relevant yet again. As of Friday’s close, the S&P 500 is actually down year-to-date, while the biotechnology sector is up an impressive 14%, as measured by the IBB. The two have clearly diverged, and it almost seems that investors are fleeing to biotechnology for safety. That’s quite a departure from years past.

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Zogenix Cuts the Albatross from Around its Neck

Insights - Zogenix (ZGNX) is divesting of its lead FDA-approved product, the painkiller Zohydro, for $100 million ($30 million in cash up front) and almost $300 million in potential milestone payments. As much as the cash and milestone potential are important to Zogenix, which is re-positioning itself as a pipeline story, more important is that Zogenix is cutting loose the albatross around its neck for the last year and a half.

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