There's Always A Bull Market Somewhere
After The Tech Massacre
Friday was a massacre for tech. Intel (INTC) and Reddit (RDDT) each lost 29%, while the VIX, the market’s fear gauge, jumped 13%.
After the bell, though, one biotech stock posted gains of more than 200%.
That was Inovio Pharmaceuticals (INO). Its shares had fallen 22% during the regular session, then rallied on the FDA’s accelerated approval of Voceryq, its treatment for adults with recurrent respiratory papillomatosis, a disease that causes growths in the airways.
A Bullish Perfect Storm
Faster science, a new FDA leadership team focused on innovation, and companies reaching important clinical and commercial milestones are coming together in biotech. For investors, those milestones can change a company’s prospects overnight.
HHS named Karim Mikhail to lead the FDA’s biologics division on September 8th with a mandate to accelerate drug development. The agency’s October 27th draft gene-editing framework proposes covering multiple patient-specific variants under one biologics application—a clearer path for developing treatments for rare diseases.
AI-assisted discovery is getting more experimental capacity too. Twist Bioscience (TWST) says its new antibody screening service can assess thousands of candidates a day, with turnaround starting at five days. That gives researchers a faster route from promising sequences to laboratory results.
We’re looking for the companies turning that progress into investable catalysts: meaningful clinical data, regulatory decisions, and the move into commercial sales.
We Were Already Positioned
We had positions in several of last week’s winners (and also a position in Twist Bioscience, a previous winner for us). On Wednesday, Genmab (GMAB) gained 28%, while Prime Medicine (PRME) and Replimune (REPL) each rose 23%. Our Thursday alert explained the work behind those positions.
Glaukos (GKOS) surged 34% after earnings on Thursday and finished the week up 33%.
Here are the 5-day returns for each of those stocks.
Where We’re Looking Next
Today’s two biotech trades aim to capture that kind of revaluation. Both involve innovative treatments with upcoming regulatory or commercialization milestones—the kind of company-specific advances that can create value as treatments move from clinical evidence toward patients.
We also have a Top Names trade in a company serving drug development. Our Top Names are our system’s highest-ranked stocks. Across 175 six-month periods since December 2022, our Top Names have averaged 18.1%, versus 9.9% for SPY.
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