Stockwatch: A Christmas Medical Conference
This article was originally published in Scrip
It was the week before Christmas week, and all around were losing their heads. Probably not because the three wise men were en route to Bethlehem, but rather because three of the four horsemen of the apocalypse appeared to be arriving in their stead, if the savage sell-off in the stock market was anything to go by. The first driver of last week's stock market sell-off was the continued plummet in global commodity prices. It is difficult to derive a strong fundamental connection between oil and drug prices since cheaper oil reduces the cost of goods of the latter, but nevertheless there was a positive correlation last week.
You may also be interested in...
Last year's platform failure and back to the drawing board status of bluebird bio was all forgotten last week as data on a few patients treated with its CAR-T therapy were released. It seems that investors are quick to forget similar failed or problematic products at Arrowhead, uniQure and Juno.
Dynavax and CoLucid benefited from share price surges last week. But were investors throwing caution to the wind and overlooking the challenges and lessons presented by standard of care therapies? Meanwhile, bluebird bio’s stock soared again.
As generalist investors continue to push higher the stock prices of biotech companies that announce the most tenuous of coronavirus developments, the track record of biotech companies developing even vaccines for which the antigen is proven to be safe and efficacious remains poor.