Medical spending tends to rise steadily, but drug stocks can see huge swings as clinical trials, FDA reviews and other news buoy or torpedo the outlook. This week's 5 big drug winners* rallied for diverse reasons.
KaloBios Pharmaceuticals (NASDAQ:KBIO) skyrocketed as new buyers stepped in before liquidation. Valeant Pharmaceuticals (NYSE:VRX) rebounded after a huge sell-off. Sarepta Therapeutics (NASDAQ:SRPT) benefited from a rival's bad news. Voyager Therapeutics (NASDAQ:VYGR) and Concordia Healthcare (NASDAQ:CXRX) built on momentum. On the downside, Clovis Oncology (NASDAQ:CLVS) crashed on poor drug news.
KaloBios Pharmaceuticals Rose 1,930%
KaloBios Pharmaceuticals said this month that it was ready to wind itself down. Then came news late Wednesday that Turing Pharmaceuticals CEO Martin Shkreli had led a group that acquired a majority stake in KaloBios. That sent shares up 403% on Thursday. On Friday, shares advanced 75.5% after Shkreli was named KaloBios CEO. All told, KaloBios shot up 1,930% for the week, hitting an 18-month high intraday Friday.
Sarepta Therapeutics Rose 29.2%
Sarepta had a much smaller gain — 29.2% — with almost all of it on Friday. Sarepta rallied after FDA reviewers were critical of BioMarin Pharmaceuticals (NASDAQ:BMRN) for its Duchenne muscular dystrophy drug. Sarepta has a competing experimental product, and the investor thinking, for now, is that BioMarin's woes are Sarepta's gain. That may or may turn out to be the case.
Voyager Therapeutics Rose 26.5%
Voyager rose 26.5% last week after jumping 29.3% in the prior week, as it debuted from an IPO priced at $14.
Valeant Pharmaceuticals Rose 20.7%
Valeant Pharmaceuticals had a nice week, rebounding 20.7%. But the one-time highflier is still down about 3% in November after losing 47% in October, 23% in September and 10.5% in August. Valeant is under investigation and political pressure for its drug pricing as well as its use of specialty pharmacies.
Concordia Healthcare Rose 19.1%
Concordia climbed 19.1% last week — and the followed a 16% gain on Friday, Nov. 13. Late Thursday, Nov. 12, Concordia reported strong quarterly results and upbeat outlook. Concordia shares had tumbled in recent weeks, tarred by association with Valeant Pharmaceuticals, which also has a growth-by-acquisition strategy.