Monday, January 20, 2014

40 Largest US Biotechnology Corps Average Stock Prices Down 37% Due to Financial Meltdown Spillover Effects, Then Up 1,212% Under Obama and the US Fed

I found 40 US Biotechnology Corps with current Total Market Capitalizations of at least $1 bil each and which also had their common stocks trading on each of the following three dates: on December 31, 2007 during President Bush's second term, on March 6, 2009, very early in President Obama's first term, which was their lowest point due to the spillover effects resulting from the 2008 financial meltdown, and also on January 17, 2014.

In deriving these US Biotechnology Corps, I first started with the very helpful Yahoo Finance Website Biotechnology Sector .

The historical stock prices of these companies were obtained from the following two excellent internet resources....  Google Finance and MarketWatch Big Charts.

These 40 largest US Biotechnology Companies had their average stock prices drop by a huge 37% from December 31, 2007 during President Bush's second Presidential term, and very early in President Obama's first term, or on March 6, 2009, which was these US Biotechnology Corps' very lowest point due to the spillover effects resulting from the disastrous 2008 Financial Meltdown.

But nearly miraculously since March 6, 2009, the average stock prices of these same 40 largest US Biotechnology Corps have increased by an off-the-charts 1,212% through January 17, 2014.

Clearly, the investors in and employees of these 40 US largest US Biotechnology Companies must be extremely pleased with the impact of actions taken by both the Obama Administration and the US Fed to successfully rescue the US economy from its extremely weakened state.

Of these 40 US Biotech companies, 17 of them are headquartered in California and 11 of them in Massachusetts.

In the first chart below are the market prices of each of these 40 largest US Biotechnology Companies on January 17, 2014, on March 6, 2009, and on December 31, 2007, sorted by Percentage Increase from March 6, 2009 to January 17, 2014:






Market Market






Price Price






% %






Change Change



Market Market Market 3-6-09 12-31-07



Price Price Price to to
Biotechnology Company HQs
1-17-14 3-6-09 12-31-07 1-17-14 3-6-09







Jazz Pharmaceuticals Palo Alto CA     150.02        0.62      14.70 24097% -96%
ACADIA Pharmaceuticals San Diego CA      24.04        0.80      11.07 2905% -93%
Incyte Wilmington DE      61.87        2.14      10.05 2791% -79%
Regeneron Pharmaceuticals Tarreytown NY     292.00      12.67      24.15 2205% -48%
Exact Sciences Madison WI      14.31        0.77        3.22 1756% -76%
Synageva BioPharma Lexington MA      96.48        6.70      34.90 1340% -81%
ViroPharma Exton PA      49.99        4.08        7.94 1125% -49%
Questcor Pharmaceuticals Anaheim CA      59.32        5.02        5.77 1082% -13%
Novavax Rockville MD        6.13        0.56        3.33 995% -83%
Medivation San Francisco CA      75.11        7.64        7.20 883% 6%
NPS Pharmaceuticals Bedminster NJ      35.67        4.06        3.83 779% 6%
Alexion Phramaceuticals Cheshire CT     139.71      16.14      18.76 766% -14%
BioMarin Pharmaceutical San Rafael CA      73.45      10.22      35.40 619% -71%
Sarepta Therapeutics Cambridge MA      26.78        3.78        8.46 608% -55%
Biogen Idec Cambridge MA     297.48      44.23      56.92 573% -22%
Seattle Genetics Bothell WA      47.95        7.23      11.40 563% -37%
Sangamo Biosciences Richmond CA      19.65        2.99      13.02 557% -77%
Ariad Pharmaceuticals Cambridge MA        6.90        1.20        4.25 475% -72%
Alnylam Pharmaceuticals Cambridge MA      87.36      15.79      29.08 453% -46%
Celldex Therapeutics Needham MA      28.32        5.35        6.00 429% -11%
Dyax Burlington MA        9.42        2.17        3.66 334% -41%
Illumina San Diego CA     136.34      31.98      29.63 326% 8%
Celgene Summit NJ     167.04      41.16      46.21 306% -11%
Halozyme Therapeutics San Diego CA      17.03        4.66        7.11 265% -34%
Gilead Sciences Foster City CA      78.40      22.01      23.01 256% -4%
ImmunoGen Waltham MA      16.14        4.91        4.15 229% 18%
Theravance South San Fran CA      38.14      12.15      19.50 214% -38%
Nektar Therapeutics San Francisco CA      13.06        4.21        6.71 210% -37%
Idenix Pharmaceuticals Cambridge MA        8.01        2.67        2.70 200% -1%
Vertex Pharmaceuticals Cambridge MA      82.09      27.77      23.23 196% 20%
MannKind Valencia CA        5.79        2.17        7.96 167% -73%
Amgen Thousand Oaks CA     119.15      46.38      46.44 157% 0%
Charles River Laboratories Wilmington MA      58.70      25.12      65.80 134% -62%
Techne Minneapolis MN      95.38      46.98      66.05 103% -29%
Cadence Pharmaceuticals San Diego CA      11.73        5.83      14.86 101% -61%
Exelixis South San Fran CA        8.08        4.34        8.63 86% -50%
Arena Pharmaceuticals San Diego CA        7.26        4.06        7.83 79% -48%
PDL BioPharma Incline Village NV        8.97        6.27      12.46 43% -50%
Intermune Brisbane CA      17.92      13.63      13.33 31% 2%
Acorda Therapeutics Ardsley NY      30.50      23.44      21.96 30% 7%








Average % Change all 40




1212% -37%

Jazz Pharmaceuticals is legally headquartered in the Ireland tax haven, but with substantial operations in the US.  When I exclude the outsized stock appreciation of Jazz Pharmaceuticals, the average stock price increase for the remaining 39 US Biotechnology companies was a still very impressive 625% from March 6, 2009 to the most recent date January 17, 2014.

But it's not just the above 40 Biotechs which are doing just great.

There are another 12 US Biotechs which had IPOs since March 6, 2009 and which now have Market Capitalizations of at least $1 bil each.  Four of these 12 are located in the medical research hotbed of Cambridge, MA.

The below chart shows the market prices on the most recent date January 17, 2014 and also on the close of the first trading date of the 12 additional US Biotech companies with current Total Market Capitalizations of at least $1 bil each and which didn't have their common stocks trading on March 6, 2009: 





Month Price






Of On




Market
First First




Price
Trading Trading
%
Biotechnology Company HQs
1-17-14
Date Date
Change









Puma Biotechnology Los Angeles CA     125.81
Jun 2012      12.50
906%
Clovis Oncology Boulder CO      72.90
Nov 2011      12.56
480%
Aegerion Pharmaceuticals Cambridge MA      62.51
Oct 2010      10.80
479%
INSYS Therapeutics Phoenix AZ      53.81
May 2013        9.50
466%
Acceleron Pharma Cambridge MA      49.14
Sep 2013      19.99
146%
Tesaro Waltham MA      32.82
Jun 2012      13.69
140%
Portola Pharmaceuticals South San Fran CA      27.72
May 2013      15.15
83%
Epizyme Cambridge MA      37.59
May 2013      22.99
64%
MacroGenics Rockville MD      40.21
Oct 2013      24.99
61%
Intrexon Germantown MD      36.82
Aug 2013      24.73
49%
OncoMed Pharmaceuticals Redwood City CA      37.00
July 2013      27.18
36%
Agios Pharmaceuticals Cambridge MA      35.93
Jul 2013      31.28
15%

These recent IPOs with a current Market Capitalization of at least $1 bil each has grown like weeds.....in fact, one of them INSYS Therapeutics literally.  Of the above 12 IPOs, one of them went public in both 2010 and 2011, two of them in 2012, and a substantially higher eight of them in 2013.

Clearly, US Biotech companies have done extremely well during the Obama Administration, and it appears that they have really picked up steam in the most recent year.  This is a very good development, not just for better US health, but also for the US economy.