Healthcare stocks skyrocketed the week of November 1, 2019, fueled by a bull market that traces its roots to the depths of the financial crisis. Upward momentum is revving up again, notching a fourth straight weekly gain Friday and pushing its advance in 2019 past 22%. After wavering at mid-year amid a US-China trade war and recession anxieties, American stocks are back in melt-up mode, ending three of the past five sessions at records.
Our weekly health-sector stock chart–located below–shows that 44 out of 47 stocks moved higher the week of November 1, 2019. The math says that’s nearly 94% of the overall group. Next up are the week’s top winners and losers where the moves are tied to company-specific news:
1) Eloxx Pharmaceuticals Inc. (Nasdaq: ELOX) led advancing issues, rocketing 109% over the week to $3.80. The clinical-stage biopharmaceutical company dedicated to the discovery and development of novel therapeutics to treat cystic fibrosis, cystinosis and other diseases announced positive data demonstrating that ELX-02 results in a pronounced increase in both CFTR protein expression and mRNA stability further supporting its proposed mechanism of action. The med also was well-tolerated with no serious adverse events in the Phase 1 program.
These data were presented at the North American Cystic Fibrosis Foundation Conference on October 31-November 2, 2019 in Nashville, TN. Eloxx Pharmaceuticals is developing novel RNA-modulating drug candidates (designed to be eukaryotic ribosomal selective glycosides) that are designed to treat rare and ultra-rare premature stop codon diseases. Premature stop codons are point mutations that disrupt protein synthesis from messenger RNA.
2) Elsewhere, Foamix Pharmaceuticals Ltd. (Nasdaq:FOMX) soared 38% to $3.86 after announcing that the FDA had accepted the application for review of its drug FMX103 to treat patients with papulopustular rosacea. The PDUFA date set for potential approval of this topical foam treatment is set for June 2, 2020. The biotech has already received FDA approval for another drug in the pipeline known as Amzeeq to treat patients with moderate to severe acne. The global acne market is expected to be worth $5.9 billion by 2025. Rehovot, Israel-based Foamix has another drug in the pipeline that is being developed to treat patients with acne known as FCD105.
3) And thinly traded nano cap EyeGate Pharmaceuticals Inc. (Nasdaq:EYEG) surged 28% to $4.10 ahead of a release of key data from a pivotal study evaluating its Ocular Bandage Gel eye drop in patients undergoing photorefractive keratectomy (laser surgery on the eye for vision correction). Randomization was completed a month ago with topline results expected by year-end. If all goes well, it expects to file a US marketing application in H1 2020. Analysts expect Waltham MA-based EyeGate to report $-0.75 EPS on November, 12. They anticipate $0.30 EPS change or 28.57% from last quarter’s $-1.05 EPS. After recoding $-0.60 EPS previously, EyeGate’s analysts see 25% EPS growth.
4) But Cyclerion Therapeutics Inc. (Nasdaq:CYCN) plunged 78% to $2.45 after announcing a pair of clinical trial failures for praliciguat, which stimulates a protein involved in the widening of blood vessels. In a Phase 2 clinical trial testing praliciguat in patients with diabetic nephropathy, a disease where diabetes causes loss of kidney function, praliciguat wasn’t able to reduce albuminuria, a marker for kidney function, compared with placebo.
There was a trend in the right direction for patients taking praliciguat, but the FDA wants to see statistical significance, not just trends. In a second Phase 2 study, praliciguat also couldn’t help patients with a specific type of heart failure. Cyclerion was expecting the drug would improve exercise capacity as measured by cardiopulmonary exercise testing, but the company didn’t even see a trend in improving heart failure symptoms.
5) And Endologix Inc. (Nasdaq:ELGX) plummeted 26% to $2.64 after the FDA issued a warning for patients using the company’s AFX endovascular stent grafts for the treatment of abdominal aortic aneurysms (AAA). The AFX with Duraply and AFX2 were all mentioned by the FDA as stent grafts with a risk of endoleaks, along with the AFX with Strata, which the FDA warned on in June 2018 after it was recalled in December 2016.
The FDA said it has approved various endovascular stent grafts for the treatment of AAA, but if a patient has any type of Endologix AFX graft, they should contact their healthcare provider. Data showed that the AFX grafts can lead to a higher-than-expected risk of blood leaking into the AAA in a Type III endoleak, which can lead to serious injury, including death, according to a news release. Irvine, CA-based Endologix’s AFX with Duraply has been implanted in patients since July 2014, according to the FDA.
MondayMorning Weekly Stock Roundup:
Weekly Stock Performance (as of November 1, 2019). P/E multiples based on predicted next annual earnings period. NM = Not meaningful
GROUP CLOSE CHG %CHG P/E
Providers/HMOs
Amedisys 146.50 +12.90 +9.66 31.2
Community Hlth 3.20 -1.27 -28.41 NM
Encompass HC 69.04 +1.36 +2.01 19.0
Fresenius 36.61 +3.83 +11.68 13.9
HCA 133.65 +7.38 +5.85 11.5
HCP 36.71 +0.41 +1.13 83.4
Tenet Health 25.88 +1.23 +4.99 9.1
Universal Hlth 138.75 +0.82 +0.60 12.9
Anthem 270.75 +7.68 +5.48 11.6
Cigna 179.51 +8.02 +4.68 9.6
Humana 296.20 +8.11 +2.82 15.8
UnitedHealth 252.21 +7.30 +2.98 15.3
Pharma/PBMs
AstraZeneca 48.39 +0.72 +1.51 24.1
BristolMyers 57.16 +2.18 +3.97 9.1
GlaxoSmithKline 45.27 +1.45 +3.31 14.8
Johnson&Johnson 131.20 +2.85 +2.22 14.5
Eli Lilly 112.51 +2.31 +2.10 17.2
Merck 84.94 +2.68 +3.26 15.3
Mylan 19.68 +0.98 +5.24 4.4
Novartis 87.63 +0.32 +0.37 15.5
Pfizer 38.39 +1.62 +4.41 13.4
Sanofi 45.64 -0.72 -1.55 12.9
CVS Health 67.24 +2.14 +3.29 9.3
Walgreens 57.38 +1.96 +3.54 9.3
Medical Supplies
Abbott Labs 82.66 +1.01 +1.24 23.0
AbbVie 81.75 +5.22 +6.82 8.6
Amerisource 86.87 +0.07 +0.08 11.5
Baxter 77.91 +0.63 +0.82 20.7
Becton Dickinsn 258.15 +13.85 +5.67 20.0
Cardinal 50.44 +0.39 +0.78 9.6
McKesson 137.11 -8.85 -6.06 8.9
Biotech
Amgen 217.95 +14.90 +7.34 13.8
Biogen 299.20 +11.16 +3.87 9.1
Biomarin 73.63 +2.44 +3.43 NM
Celgene 108.53 +3.32 +3.16 8.8
Emergent Bio 59.06 +4.05 +7.36 17.0
Gilead 64.66 +1.34 +2.12 9.3
Incyte 83.58 +6.03 +7.78 27.4
Regeneron 310.48 +4.27 +1.39 12.4
Vertex 200.94 +6.45 +3.32 30.5
Medical Devices
Boston Sci 41.51 +0.66 +1.62 23.2
Intuitve Srg 559.37 +10.10 +1.84 39.7
Medtronic 108.57 +3.13 +2.97 18.1
Stryker 212.77 +1.15 +0.54 23.6
Thermo Fisher 303.60 +6.92 +2.33 22.3
Varian 123.30 +3.00 +2.49 20.1
Zimmer 138.22 +4.15 +3.10 16.7
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