Healthcare 02 (May 15 - Dec 25)

[winston]

This Biotech ETF Is Soaring, But A Bearish Friend Lures Traders

The S&P Biotechnology Select Industry Index is up more than 14 percent to start 2019.

Direxion Daily S&P Biotech Bull 3X Shares (NYSE: LABU), one of the largest leveraged biotechnology ETFs, is up more than 45 percent year-to-date.

Strength in mid- and small-cap biotechnology stocks as the S&P Biotechnology Select Industry Index's 120 holdings have an average market capitalization of $10.92 billion.

Source: Benzinga

https://finance.yahoo.com/news/hot-star ... 32013.html

[winston]

SG: Singapore Healthcare

Time for a health-check | INITIATE NEUTRAL

by Lai Gene Lih

Initiate sector at Neutral.

RMG and HMI's domestic volumes in SG/MY are supported by population aging and rising affluence. However, rising cost competitiveness of healthcare in Malaysia vs. Singapore amid a stronger SGD may pose challenges to RMG, but benefit HMI.

Whilst long-term prospects of overseas expansion are positive, wider than expected gestation loss is a risk.

Prefer HMI (BUY, TP SGD0.68) over RMG (HOLD, TP SGD1.05), as RMG's growth prospects from new China hospitals appear priced in.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... f1539f.pdf

[winston]

China Healthcare: Reforms underway

China’s National Healthcare Security Administration (NHSA) recently announced its revised work plan for the adjustment of the National Medical Reimbursement Drug List (NRDL) as part of its medical reform to promote medical innovation and to reduce the burden on patients.

The revised list is expected to be released in Sep-Oct 2019, with priority given to national essential drugs and medicines with the treatment of major diseases such as cancer and rare diseases, chronic illness, children's drugs, and emergency rescue drugs.

The government also signalled that it intends to further promote the centralised drug procurement program this year, and is likely to expand the program to other cities.

As such, we expect the prices pressure on generic drugs to continue. As consolidation continues, we believe that companies with a rich pipeline of innovative drugs and long-term strategy on R&D stand a higher chance of surviving the race.

Maintain NEUTRAL.

Source: OCBC

[winston]

ARK Genomic Revolution Multi-Sector ETF (ARKG)

ARK Genomic Revolution Multi-Sector ETF is a actively-managed thematic fund, with market cap of approximately USD 403.14 million and expense r atio of 0.75%.

It invests in companies which are tracking genomics revolution across multiple sectors including health care, information technology, materials, energy and consumer discretionary.

ARKG ETF are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments, improvements, and advancements in genomics into their business.

It offers exposure to innovative elements including gene therapy bio-informatics, bio-inspired computing, molecular medicine and pharmaceutical innovations.

According to ARK's research, the number of human genomes sequenced is expected to reach 170 million by 2022 from 422,000 in 2016.

At the meantime, due to the technology advancement, the cost of whole genome sequencing will drop from thousands of dollars to about 100 in the future.

Therefore, investors can captalize the growth of genomics industry via ARKG.

Suggested to buy at $30.20, target price $36.00, cut loss if drop below $29.52.

Source: Phillips

[winston]

China: Drugmakers Broadly Subdued as Some Drug Prices Purportedly Dive Over 50% in CN's 2nd Round Bulk Purchase

The pharmaceutical sector was generally stifled today.

SINO BIOPHARM (01177.HK), bottoming at $9.48, cratered 2.5% to $10.1; HANSOH PHARMA (03692.HK), FOSUN PHARMA (02196.HK), CHINARES PHARMA (03320.HK) tanked 1%-2%.

While Beijing is soon revealing the bidding results for the second round of drug bulk purchase, Chinese press learnt from on-site bidders that there were significant downward adjustments in bidding prices, with more than 50% price slump for some medicine.

Source: AAStocks Financial News

[winston]

iShares U.S. Medical Devices ETF (IHI)

iShares U.S. Medical Devices ETF tracks the performance of the Dow Jones US Select Medical Equipment Index, with market cap of approximately USD 2.56 billion and expense ratio of 0.43%.

The ETF holds 58 health care stocks of varying cap sizes.

Its investments are focused in health care equipment and supplies.

Some of the top 10 holdings of IHI include ABBOTT LABORATORIES, MEDTRONIC PLC, STRYKER CORP, DANAHER CORP and BOSTON SCIENTIFIC CORP.

U.S. medical devices companies have a substantial competitive advantage due to significant innovations in microelectronics, biotechnology and software.

The demand for medical devices is expected to increase throughout the world due to the aging population. Hence, IHI is poised to take advantage of the future growth prospects in this sector.

In 2019, S&P 500 Healthcare Equipment Index generated 23.41 % total return , which was greater than that of S&P 5! 00 Index (21.30%) and that of S&P Healthcare Index (6.63%).

Within health care sector, large-cap medical device stocks were the best performers in 2018.

Although medical device stocks` P/E ratio is at decade high (19x for 2019), the organic growth of the sector is likely to remain strong due to new product cycles, strong emerging-market demand and better operating margin in 2019.

Additionally, the sector is also benefiting from Trump tax reform policy, which encourages increased M&A activities and R&D activities.

Heading into 2019 of expected economic slowdown and US-China trade war, investor can invest in IHI ETF as health care stocks have historically been considered non-cyclical, defensive stocks.

Entry Price: USD 250.03
Stop Loss: USD 245.58
Target Price: USD 265.80

Source: Phillips

[winston]

not vested

iShares Nasdaq Biotechnology ETF (NASDAQ: IBB)

by Michael A. Robinson

218 stocks.

Take a look at a few of its top holdings:

1. Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is a major biopharma firm with six drugs on the market. One targets squamous cell skin cancer.

2. Incyte Corp. (NASDAQ: INCY) specializes in cancer. It focuses on immuno-oncology, or using the body’s immune system to help destroy disease.

3. Seattle Genetics Inc. (NASDAQ: SGEN) uses antibodies to target cancerous tumor cells. This approach is similar to traditional chemotherapy, but is a great improvement because its compound leaves healthy cells alone.

4. NovoCure Ltd. (NASDAQ: NVCR) has a completely unique cancer therapy that has begun to gain traction. It uses electric fields tuned to specific frequencies to disrupt cell growth, causing cancer cells to die.

Source: Money Morning

https://dailytradealert.com/2019/12/05/ ... -shares-2/

[winston]

A Guide to Biotech ETF Investing

by Sweta Jaiswal

Increasing mergers and acquisition (M&A) deals, growing AI dominance and favorable regulatory tidings. continue to work in favor of the biotech market.

Source: Zacks

https://finance.yahoo.com/news/guide-bi ... 07398.html

[winston]

BofAML: China Adopts Elimination in 3rd Round GPO, May Bring Bigger Drug Price Cut Pressure

Bank of America Merrill Lynch in its report cited Chinese media that new rules of 3rd round GPO were announced at the meeting last Friday.

Elimination rule is adopted in this round of tender, where "n-1" winners (6 winners at most) are to be selected when there are n bidders, which may result in significant bidding price cuts across large and small drugmakers.

Given bidding prices far lower than market expectations in the prior two rounds of GPO bids, the broker expects a tough price cut in this round of bidding process.

Source: AAstocks.com

[winston]

There’s more upside for biotech even after 24% gains in two months

By Michael Brush

Stay in biotech for more upside, and consider buying if you have no exposure.

Though the “easy” money has been made,biotech can go higher from here for three reasons.

1. Washington, D.C. is on hold.
2. Continuing optimism ahead of Woodstock for Biotech (JPM Healthcare Conf. Jan 13-16)
3. More M&A.

Source: Market Watch

https://www.marketwatch.com/story/there ... yptr=yahoo