Stockwatch. The ASCO effect and Saturday night sailors
This article was originally published in Scrip
A more forensic examination of investor behaviour may reveal a better understanding of which projects really have the support of knowledgeable people with money.
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Following Mylan’s first-quarter 2020 earnings announcement, all the biggest generic pharmaceutical companies have now reported. Concerns about supply chain disruptions in March have proven to have been overblown and guidance has largely been reaffirmed. So, are generics immune from coronavirus?
As the first-quarter 2020 earnings season transitions from big pharma to the long tail of smaller biotech companies, the coronavirus pandemic-related dynamics of channel stocking and greatly diminished numbers of clinic visits have magnified effects at companies with single underperforming drugs.
After three weeks of the first-quarter 2020 earnings season, the coronavirus pandemic has left pure-play pharmaceutical companies in a much better position than many other sectors. One of the reasons behind this has been channel stocking. As some companies have learnt in the past, this can be a double-edged sword.