Guest post by Jim Patrick, Publisher, The Life Sciences Report
It’s been four months since Streetwise Reports’ The Life Sciences Report‘s 2015 Small-Cap Biotech Watchlist was announced at the Biotech Showcase™ in San Francisco. Although our portfolio tracker follows the basket of stocks chosen by the panel of experts—Mara Goldstein, managing director at Cantor Fitzgerald; Reni Benjamin, head of equity research at H.C. Wainwright & Co.; Bert Hazlett, managing director of equity research at Ladenburg Thalmann & Co.; Joe Pantginis, head of biotechnology research at Roth Capital Partners; and George Zavoico, managing director of equity research at MLV & Co.—in real time, we like to take a minute each quarter to look at what happened and what we can expect in the coming months.
The year is off to a bumpy start, though the rough ride is not predicated, necessarily, on individual company performance. As of May 8, 2015, the Watchlist was posting a return of -16%. The decline is reflective of the slams taken by the stock of two companies after they missed endpoints in clinical trials.
It also reflects a springtime check on the biotech market’s ongoing bull run. As BioCentury senior editor Steve Edelson wrote on May 4, analysts noted the recent “6% hosing of biotech indices reflects generalist investors exiting the sector.” Small-cap biotechs, like those on the Watchlist, have been the hardest hit. In addition, analysts who spoke with BioCentury believe the drop was a “temporary decline that would likely serve to set a new base for continued growth.”
You can see the track record for the individual companies here, read the comments from when the panel was held and sign up to receive further updates throughout the year. Look for the annual recap and the launch of next year’s Watchlist at the 2016 Biotech Showcase.
Publisher of The Life Sciences Report, Jim Patrick, has served in publisher roles for investment research print media and online publications for 20+ years.