Biotech stocks escaped the doldrums today ignited by Roche (RHHBY) acquisition of Ignyta, Inc. (RXDX) for $1.7B in an all-cash transaction. The stock soared 71%. Ignyta is focused on precision medicine in oncology with lead molecule entrectinib a tyrosine kinase inhibitor targeting tumors with ROS1 or NTRK fusions. We covered Ignyta in April 2015 after a restructuring. Approval of the drug is expected in H1 2019. Three other Phase 1 drugs are in the Ignyta pipeline.
Biotech investors who have been distracted by better trades elsewhere and waiting for deal news or clinical catalysts decided to jump in. Today we bounced over 1% to $84 on the XBI after testing the $81 level.
The large cap IBB is flat near the 107 level in light trading. Biotech investors are awaiting Company updates and nw from the J.P.Morgan Healthcare Conference on January 8, 2018. Large caps overall were weak.
Market Snapshot:
Stay long for early January updates. XBI now at $84 is favored for deals and momentum.
