When many big names participated at the JPM19 biotechnology conference, the timing could not be more perfect. Not only did the S&P 500 rise 2.6% on the week but the presentations attracted buyers.
After rising from a $90 low with the Biotech ETF (IBB), investors may want to lock in gains.
Regeneron (NASDAQ:REGN), whose shares bottomed at $340 three times since Nov. 2018, ended last week near 52-week highs. The P/E of 22x is not too high but renewed attacks on Eyelea pricing may rattle investor confidence.
The IBB ETF erased all of December’s losses but rose on weaker volume. Anyone who averaged down or bought the ETF at the $89 yearly low will lock in gains of over 20%.
Bristol-Myers (NYSE:BMY), which sold off after it bid for Celgene (NASDAQ:CELG), is an exception. Though the stock recovered slightly, the long-term deep value is compelling. BMY stock will underperform as it absorbs Celgene into the business.
But the deeper product portfolio and cost cuts ahead should benefit long time shareholders.
Johnson & Johnson (NYSE:JNJ) is another exception. Markets priced in the risks of litigation related to the baby powder product. But the discounting on shares are overdone.
