In last week’s biotech recap, and again at PropThink.com this week, we outlined some key support levels for the S&P 500 (SPX or SPY), explaining why we thought a temporary bounce was in the cards as the index tapped the bottom of its current uptrend.
Sure enough, the latter half of the week brought with it a meaningful move higher, led by small/mid-cap stocks beginning on Wednesday. By the end of Friday, the SPY closed slightly below its 50-week Simple Moving Average, and still below the ETF’s 200-day Simple Moving Average, despite ending the week almost 4% up from its lows.
Despite this 3-day rally, we’re not out of the woods yet. The SPY is still trading below a number of key moving averages, which traders consider a negative signal, and we’re in the midst of earnings season. No one can predict where the market will go next, but we can continue to watch major support and resistance points to inform our investing and trading decisions. Now, we’re looking for the SPY to regain its 200- and 50-day moving averages, both bullish considerations; the close on Friday below the 50-week moving average wasn’t exactly confidence inspiring. It’s still early to say a bottom is in. We note that the brief recovery in small- and mid-cap stocks, especially biotech stocks, was likely driven by short covering rather than fundamental buyers.
Learn why 1800, or thereabouts, was an interesting level to watch this week.
We announced this week that Zack Fink (@bioterp) is joining the PropThink contributor team, with insights on (and a clear passion for) the RNAi, gene therapy, and immunotherapy subsectors. Mr. Fink kicked off this week with an overview of Tekmira Pharmaceuticals’ (TKMR) first preclinical data for its hepatitis B therapeutic, TKM-HBV, presented at a medical conference for the first time publicly on Thursday. The data, though early, are encouraging in the wake of Arrowhead Pharmaceuticals’ (ARWR) massive sentiment shift just a week ago. TKM-HBV demonstrated potent reduction of Hepatitis B surface antigen (HBsAg) and cccDNA in a uPA/SCID chimeric mouse model, unique compared to other animal models in which experimental HBV therapeutics have been tested to date, including those used by Arrowhead. The model has the ability to support cccDNA, an important molecule that acts as factory and reservoir for the HBV virus; Alnylam’s (ALNY) ALN-HBV and Arrowhead’s ARC-520 both lack preclinical models that demonstrate this capability. Read Tekmira’s Not All About Ebola: First Hepatitis B Data Encouraging
Fellow RNAi therapeutic developer Alnylam posted updated results this week for patisiran (ALN-TTR02) in the rare disorder TTR-mediated amyloidosis in patients with familial amyloidotic polyneuropathy. Patisiran is enabled by Tekmira’s SNALP delivery technology and has offered incremental validation of Tekmira’s in-house use of SNALP-enabled therapeutics.At 6 months, patisiran-treated patients showed on average a 0.95 point decrease in modified Neuropathy Impairment Score (mNIS+7) in 19 patients. mNIS+7 is an evaluation of muscle weakness, sensory function, and nerve damage; neuropathy progression results in a higher score over time. Alnylam compares the 0.95 decrease to a 7 – 10 point increase in mNIS+7 seen historically in untreated FAP patients after six months. Patisiran also generated a sustained mean TTR knockdown of 80% for over nine months, and has produced no drug-related serious adverse events to date. Again, this is good for the safety of Tekmira’s SNALP-enabled drug candidates. Click here to keep reading
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Repros Therapeutics (RPRX) has a long and sordid history, beginning its existence as Zonagen almost 30 years ago and slowly morphing into the Repros of today with little to show for it from a value-creation standpoint – the stock is down 73% since its 1993 IPO. This week, FDA delivered yet another blow to the developer of Androxal, a treatment for secondary hypogonadism in men, with the announcement that a planned meeting regarding Androxal will be a “Type C” meeting rather than a “Type B” meeting. In this situation, the Type B meeting would have preceded Repros submitting a New Drug Application to the regulatory agency. FDA is essentially saying that it has insufficient data in its possession to advise Repros on the application filing – exactly why is unknown.Repros had previously guided for a Type B meeting in September. The stock was down 40% in the Friday session.Credibility remains an issue for Repros, and investors tend to give the company a wide berth when it comes to new unknowns. The Type C meeting, and consequently a timely NDA filing, are just that – new unknowns. Read FDA Continues to Quash Interest in Repros Therapeutics.
Also this week:
First Pharma Giant to Report, J&J Posts Strong Third Quarter
