Biotech Rally Pauses But Clinical News and M&A Underpinnings Create Surge in ARRY and GWPH

Stocks were weak across the screen today withe the Nasdaq down 0.91% as investors may be distracted by the upcoming Presidential debates and the plethora of opinions on election politics affecting  the market. The XBI is just a tad off recent tops down 0.54% but outperforming other ETFs YTD. The IBB could not break through resistance of at recent highs of $300 and was down 1.2% today to $294.53. Large caps could not find buying interest and Celgene (CELG) took a surprisingly big 2.85% hit on good volume. A Fortune article focused on CELG insider selling. Celgene is one of our major indicators of the biotech market rally from a bear market and is still down 11.23% YTD.

Despite choppy trading there were several big winners:

• Puma Biotechnology (PBYI) was up 2.35% on average volume after last week’s positive FDA acceptance of the Company’s neratinib marketing application.
• Array Biopharma (ARRY) rocketed 81% on news that its treatment of metastatic melanoma (BRAF Mutant) met its primary endpoints in a late stage goal.
• GW Pharmaceuticals (GWPH) soared 17.2% to a 52 week high on a second Phase 3 pivotal trial for cannabidiol for treatment resistant childhood onset epilepsy.
• Ariad Pharmaceuticals (ARIA) continued its run now up 15% over five days on takeover speculation.

Look for news and action tomorrow on gene therapy and CAR-T stocks like BLUE, JUNO and KITE.