Biotech Stocks Rally to New Highs After 4% Correction

Buyers Are Bottom Feeding Energy Stocks

NASDAQ at 4765

Just as the market appeared to be headed to another test of October lows, challenged by news on slowing global growth and a collapsing energy sector, FED Chair Janet Yellen calmed the markets saying it would be “patient” on raising interest rates. This triggered an amazing 4.5% upside move in just two days showing how sentiment drives markets. Although perceived macro risks have not changed since Monday, any concern about sharp increases in interest rates has been put aside for now. Energy stocks also rallied since Monday with the XLE up 8.8% over five days.

Here is a brief summary of market data, after a huge week, from the life science sector now that we are back to new highs.

A biotech IPO today, Juno Therapeutics  focused in immunotherapy for cancer (CAR-T), is up 45% from offering price of $24 with 11 M shares being sold. The market cap is approaching $3B with 5 products in the pipeline. The Company was founded by a group of scientists at Memorial Sloan Kettering with major funding by at ARCH Venture Partners and Venrock. We covered the hot T-cell therapy area with a post from the 2014 BIO Investor Forum where four companies presented their potential products and technologies. We will provide an update of these four companies-BLUE, GBIM. KITE , ZIOP- in comparison to JUNO. All of the stocks have soared in a way “feeding off” each other.