Biotech’s the biggest boom-or-bust business on the market, with regulatory approvals and clinical trial results routinely sending stocks hurtling up or down by significant amounts. Even the Nasdaq Biotechnology Index can swing wildly with a strong week, the way it did over the past five days, shooting up by nearly 5.5% — more than twice the S&P 500 (INDEXSP:.INX)‘s gains for the week despite the S&P’s run up to record highs.
What fueled biotech’s big gains this week? Let’s check out three of the top movers in the industry and dig into what you need to know.
Celldex falls, but potential remains
Celldex Therapeutics, Inc. (NASDAQ:CLDX) didn’t have bad news plague its week, either — on the contrary, this company’s been humming along just fine recently. For a company still early on its life, Celldex has looked strong so far as it develops Rindopepimut and CDX-011, its phase 2 drug candidate to fight a difficult form of breast cancer. This week’s fall seems more about investors looking to pull back on gains more than anything else, but CDX-011 and Rindopepimut both have looked strong in combatting stubborn diseases so far, and this stock has proved that big gains are no problem. In the world of biotech, a 200% year-to-date run-up certainly doesn’t preclude even higher gains if Celldex’s good momentum keeps up.
It won’t be a cheap buy for Roche Holding Ltd. (ADR) (OTCBB:RHHBY): Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)’s already valued at more than $22 billion by its market cap. However, Alexion’s worth the money: Its orphan blood disease-treating Soliris, the company’s only drug on the market, racked up more than $1.1 billion in sales last year, a 45% year-over-year gain that’s only headed higher.