It is a bloody day on Wall Street and across the world's markets, but I am not worried, yet. Since I am mainly in biotechnology stocks I will be interested to see if England eventually stops using the EMA (European Medical Authority) to decide what new drugs to allow to be sold in the country. And of course if the dollar weakens that tends to hurt American pharmaceutical companies, as sales in Europe look worse once they are converted to dollars.
Meanwhile I see much of the value in my particular portfolio in the development pipelines of the companies I own. Successes and failures will have more of an impact than Brexit.
I had two articles published at Seeking Alpha this week:
Alnylam Readouts Offer 2017-2018 Catalysts
Microchip is a Buy on Atmel Transformation
I own a small amount of Alnylam, while Microchip Technology is one of my largest positions, representing almost 10% of my portfolio.
To see the other stocks I own or follow, with links to my notes on the companies, see:
William Meyers Stocks
Showing posts with label Alnylam. Show all posts
Showing posts with label Alnylam. Show all posts
Friday, June 24, 2016
Wednesday, December 9, 2015
Alnylam, Celsion, Protalix, and Agios Pharmaceuticals
"Its been a long time, been a long time, been a long time ..."
Yesterday Seeking Alpha published my latest research and opinion on Alnylam (ALNY):
Why Alnylam Should Be a Big Mover in 2016
I first bought Alnylam on October 6, 2015 at $75.13. As I write it is at $100.57. I have followed Alnylam for some time, so that run up is not a display of genius. I took advantage of the Hillary Clinton biotech swoon to buy ALNY at a reduced price. As I note in the article, Alnylam is priced as if it already has commercial revenue and profits, when in fact it is a developmental stage company. Failure of its drug candidates in trials could made $75 per share look ridiculously high. But its platform can generate many therapies, making it a possible tenner if you can wait a decade.
What else have I bought since I last wrote?
Acceleron (XLRN) at $22.48 on October 14, 2015
Celsion (CLSN) at $1.81 on November 16, 2015
Protalix (PLX) at $1.05 on November 18, 2015
Star Bulk (SBLK) at $0.98 on November 20, 2015
Agios (AGIO) at $50.31 on December 7, 2015.
The only sale I made during the period was Ocata (OCAT), and that is because it was being acquired anyway. I bought OCAT at $5.12 in July and at $3.84 in August. I meant it as another long-term investment. I sold it at $8.48 on December 2, a bit below the buy-out price of $8.50.
My purchases listed above were small even by my standards, mainly just reinvesting the Ocata funds.
The bulk of my portfolio remains in the larger companies: Gilead, Celgene, Biogen, Amgen, and Mylan.
I continue to believe that, for long-term investors, most biotechnology stocks are underpriced right now. While I agree that some government regulation of the most predatory companies may be appropriate, and might even happen, I believe that innovative companies that create therapies valuable to patients should continue to be able to provide better-than-market returns to investors. I believe during patent protection periods pricing should be up to the patent holders. Of course if Medicare or Medicaid feel those prices are too high, they should be able to refuse to pay for the patent-protected therapies, or negotiate a mutually agreeable price.
Even in a Hillary Clinton administration with Democratic majorities in Congress, I believe there is little chance that the current system will undergo anything other than minor tweaks.
Yesterday Seeking Alpha published my latest research and opinion on Alnylam (ALNY):
Why Alnylam Should Be a Big Mover in 2016
I first bought Alnylam on October 6, 2015 at $75.13. As I write it is at $100.57. I have followed Alnylam for some time, so that run up is not a display of genius. I took advantage of the Hillary Clinton biotech swoon to buy ALNY at a reduced price. As I note in the article, Alnylam is priced as if it already has commercial revenue and profits, when in fact it is a developmental stage company. Failure of its drug candidates in trials could made $75 per share look ridiculously high. But its platform can generate many therapies, making it a possible tenner if you can wait a decade.
What else have I bought since I last wrote?
Acceleron (XLRN) at $22.48 on October 14, 2015
Celsion (CLSN) at $1.81 on November 16, 2015
Protalix (PLX) at $1.05 on November 18, 2015
Star Bulk (SBLK) at $0.98 on November 20, 2015
Agios (AGIO) at $50.31 on December 7, 2015.
The only sale I made during the period was Ocata (OCAT), and that is because it was being acquired anyway. I bought OCAT at $5.12 in July and at $3.84 in August. I meant it as another long-term investment. I sold it at $8.48 on December 2, a bit below the buy-out price of $8.50.
My purchases listed above were small even by my standards, mainly just reinvesting the Ocata funds.
The bulk of my portfolio remains in the larger companies: Gilead, Celgene, Biogen, Amgen, and Mylan.
I continue to believe that, for long-term investors, most biotechnology stocks are underpriced right now. While I agree that some government regulation of the most predatory companies may be appropriate, and might even happen, I believe that innovative companies that create therapies valuable to patients should continue to be able to provide better-than-market returns to investors. I believe during patent protection periods pricing should be up to the patent holders. Of course if Medicare or Medicaid feel those prices are too high, they should be able to refuse to pay for the patent-protected therapies, or negotiate a mutually agreeable price.
Even in a Hillary Clinton administration with Democratic majorities in Congress, I believe there is little chance that the current system will undergo anything other than minor tweaks.
Tuesday, October 6, 2015
Positions Update; bought Alnylam Pharmaceuticals
The biotech meltdown has continued since my last post, mostly due to downgrades of certain stocks, but in the case of Illumina (ILMN), because of an earnings pre-announcement today. I did not buy, but ILMN is getting to a tempting level.
I've been buying selectively, but looked at my Openicon positions page today and noted it is sadly out of date. So I fixed it up. Click on the link and you can see what I currently own with further links to my notes and Seeking Alpha articles.
My only new company is Alnylam Pharmaceuticals (ALNY) which I bought today for $75.13 per share. This is a mostly early-clinical stage company working with RNAi therapy. I've been watching it some time, but too much profit was built into the stock price for me. It could still go lower, especially if negative clinical results come in, but I was comfortable, even pleased, at the price I bought at. It is a stock for investors with a 3 to 10 year time horizon.
I also added to three positions I already had, again because the price was right by my lights:
Gilead Sciences (GILD) on September 28
Mylan (MYL) on September 28
Merrimack (MACK) on October 1.
I am looking forward to Q3 earnings calls.
I've been buying selectively, but looked at my Openicon positions page today and noted it is sadly out of date. So I fixed it up. Click on the link and you can see what I currently own with further links to my notes and Seeking Alpha articles.
My only new company is Alnylam Pharmaceuticals (ALNY) which I bought today for $75.13 per share. This is a mostly early-clinical stage company working with RNAi therapy. I've been watching it some time, but too much profit was built into the stock price for me. It could still go lower, especially if negative clinical results come in, but I was comfortable, even pleased, at the price I bought at. It is a stock for investors with a 3 to 10 year time horizon.
I also added to three positions I already had, again because the price was right by my lights:
Gilead Sciences (GILD) on September 28
Mylan (MYL) on September 28
Merrimack (MACK) on October 1.
I am looking forward to Q3 earnings calls.
Tuesday, April 28, 2015
Almost Bought Alnylam Pharmaceuticals
As I continued my quest to research most of the Biotechnology companies, starting with those in the IBB, I got to Alnylam (ALNY) over a week ago. Then earnings season got underway, and it took me some time to finish up the research and write my opinion, which you can find at:
Is Alnylam In 2020 Worth $9 Billion Now?
I concluded I should buy some ALNY, though there is considerable risk due to the high market capitalization for a development-stage company, as high or higher as some companies with products already approved by the FDA and generating income.
Biotechnology stocks sold off on Monday, and when I looked at Alnylam this morning, after Seeking Alpha published my article it was further down, well below where it was when I started my research (at which time the market cap was $10 billion).
I decided to buy, but did not actually hit the button. After all, I have limited cash, and what goes to ALNY can't go to something else. In particular Seattle Genetics (SGEN) is reporting Q1 results on Thursday. I own a little bit of SGEN, and would like more. And then there others ...
So I'm going to try to not hit the Buy button until earnings season is over and I can make a rational decision about where to put cash to use, or to hold it.
I don't believe that biotechnology stocks are over priced in general, but it has gotten harder these last few years to find undervalued ones. I do occasionally sell parts of my positions when I think a particular stock has gotten frothy, and also when a stock has done so well that it has become too big of a part of my portfolio. That is where the cash comes from.
Biotechnology is perfect for buy and hold. In the longer run most of this class of company will turn pipelines into commercial therapies, and money. In the short run they can fluctuate drastically. When the Fed or Goldman or whoever screams sell, I usually wait until I like the prices, and then I buy. But not today.
Is Alnylam In 2020 Worth $9 Billion Now?
I concluded I should buy some ALNY, though there is considerable risk due to the high market capitalization for a development-stage company, as high or higher as some companies with products already approved by the FDA and generating income.
Biotechnology stocks sold off on Monday, and when I looked at Alnylam this morning, after Seeking Alpha published my article it was further down, well below where it was when I started my research (at which time the market cap was $10 billion).
I decided to buy, but did not actually hit the button. After all, I have limited cash, and what goes to ALNY can't go to something else. In particular Seattle Genetics (SGEN) is reporting Q1 results on Thursday. I own a little bit of SGEN, and would like more. And then there others ...
So I'm going to try to not hit the Buy button until earnings season is over and I can make a rational decision about where to put cash to use, or to hold it.
I don't believe that biotechnology stocks are over priced in general, but it has gotten harder these last few years to find undervalued ones. I do occasionally sell parts of my positions when I think a particular stock has gotten frothy, and also when a stock has done so well that it has become too big of a part of my portfolio. That is where the cash comes from.
Biotechnology is perfect for buy and hold. In the longer run most of this class of company will turn pipelines into commercial therapies, and money. In the short run they can fluctuate drastically. When the Fed or Goldman or whoever screams sell, I usually wait until I like the prices, and then I buy. But not today.
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