Has investor fatigue started to creep into the biotech sector?

Despite being one of the darlings during the pandemic, stocks in the sector have recently been sold off as the world gradually emerges from lockdowns.

The pandemic had lifted stocks like Moderna (+300% in one year) to new heights, but recently investors’ interest in the sector has cooled off.

The Nasdaq Biotechnology Index has fallen by 8% over the past month, while the S&P Biotechnology Select Industry Index is down 5%.

In Australia, the S&P ASX 200 Health Care index (ASX:IHJ) is also down 4% in the last 30 days.

But BK Asset Management’s Boris Schlossberg reckons that investors need to stick with the biotech sector for the long run.

“Life sciences generally as a sector is going to be one of the key sectors of the 21st century,” Schlossberg told CNBC’s Trading Nation program.

“This is one of those types of sectors that you simply cannot ignore. It’s going to be a core holding for any investor,” he said.

“Whatever sell-offs we have, whatever dips we have in this sector are very much temporary. You’ve got to just buy the dip here all the way through.”

Best and worst performing ASX health stocks

Code Company Price %Mth %Yr MktCap
MVP Medical Developments 5.04 35 -5 $ 346,346,305.92
CGS Cogstate Ltd 2.33 34 240 $ 396,753,827.20
MDR Medadvisor Limited 0.32 33 -20 $ 120,792,125.44
AT1 Atomo Diagnostics 0.345 33 -1 $ 140,998,166.27
ANP Antisense Therapeut. 0.22 26 76 $ 129,257,177.18
NTI Neurotech Intl 0.051 24 219 $ 35,537,775.43
VLS Vita Life Sciences.. 1.5 22 56 $ 78,978,918.00
PAL Palla Pharma Ltd 0.33 20 -53 $ 52,621,777.98
ACW Actinogen Medical 0.11 20 301 $ 183,970,440.17
MEB Medibio Limited 0.0095 19 -14 $ 16,155,553.48
IRX Inhalerx Limited 0.105 17 80 $ 18,531,365.27
CDY Cellmid Limited 0.063 17 -46 $ 11,620,694.72
IVX Invion Ltd 0.014 17 40 $ 82,107,327.16
RHY Rhythm Biosciences 1.235 15 438 $ 254,736,098.82
ARX Aroa Biosurgery 1.155 14 -13 $ 399,979,494.72
NSB Neuroscientific 0.405 13 21 $ 57,388,657.20
HXL Hexima 0.37 12 21 $ 47,094,101.48
IPD Impedimed Limited 0.14 12 69 $ 194,623,224.64
ZLD Zelira Therapeutics 0.04 11 -47 $ 47,612,918.64
PSQ Pacific Smiles Grp 2.76 10 65 $ 429,275,413.22
1ST 1St Group Ltd 0.0175 9 -40 $ 8,955,466.69
TRU Truscreen 0.061 9 $ 21,046,242.67
PTX Prescient Ltd 0.245 9 271 $ 141,809,957.96
VTI Vision Tech Inc 1.045 9 -66 $ 24,108,210.00
ONE Oneview Healthcare 0.41 8 971 $ 179,888,080.00
PAB Patrys Limited 0.042 8 111 $ 74,973,227.30
OCC Orthocell Limited 0.525 7 30 $ 102,465,497.83
EYE Nova EYE Medical Ltd 0.4 7 27 $ 58,221,516.40
CDX Cardiex Limited 0.07 6 19 $ 65,859,172.01
PAA Pharmaust Limited 0.096 5 -31 $ 29,789,764.00
CYP Cynata Therapeutics 0.6 5 -34 $ 87,398,722.34
SOM SomnoMed Limited 2.35 5 -4 $ 194,484,390.25
IBX Imagion Biosys Ltd 0.071 4 -10 $ 74,220,736.15
OVN Oventus Medical Ltd 0.12 4 -51 $ 29,007,184.20
BIT Biotron Limited 0.053 4 -42 $ 37,202,433.79
MX1 Micro-X Limited 0.305 3 30 $ 138,038,323.50
NOX Noxopharm Limited 0.535 3 27 $ 154,886,113.50
IMU Imugene Limited 0.41 3 645 $ 2,303,098,524.30
CYC Cyclopharm Limited 1.665 2 -28 $ 154,068,457.95
ADO Anteotech Ltd 0.235 2 124 $ 423,634,218.94
PAR Paradigm Bio. 1.95 1 -35 $ 424,918,471.23
EZZ EZZ Life Science 0.535 1 $ 6,420,000.00
PBP Probiotec Limited 2.2 1 24 $ 175,758,029.44
JHC Japara Healthcare Lt 1.385 0 242 $ 370,137,549.28
ONT 1300 Smiles Limited 8.05 0 19 $ 190,847,775.04
LCT Living Cell Tech. 0.011 0 -27 $ 6,285,850.79
HCT Holista CollTech Ltd 0.059 0 -9 $ 16,245,596.13
ATH Alterity Therap Ltd 0.031 0 -38 $ 72,206,237.34
SCU Stemcell United Ltd 0.014 0 17 $ 14,606,489.21
ICS ICSGlobal Limited 0.575313 0 26 $ 6,054,604.94
GTG Genetic Technologies 0.007 0 -18 $ 64,582,631.00
FFC Farmaforce Ltd 0.051 0 -27 $ 6,664,729.98
ALT Analytica Limited 0.002 0 -33 $ 9,227,602.26
AHK Ark Mines Limited 0.034 0 0 $ 1,778,919.95
ATX Amplia Therapeutics 0.205 0 24 $ 24,964,268.00
AVE Avecho Biotech Ltd 0.018 0 140 $ 33,050,097.47
KZA Kazia Therapeutics 1.445 0 83 $ 190,875,180.96
AC8 Auscann Grp Hlgs Ltd 0.089 -1 -39 $ 38,327,598.57
VHT Volpara Health Tech 1.215 -1 -16 $ 300,366,931.80
RGS Regeneus Ltd 0.075 -1 -52 $ 22,765,377.23
RAC Race Oncology Ltd 3.2 -2 316 $ 471,874,198.04
IDT IDT Australia Ltd 0.605 -2 278 $ 142,716,801.15
BWX BWX Limited 4.84 -2 10 $ 770,654,109.17
SDI SDI Limited 1.04 -2 30 $ 118,865,530.00
CAN Cann Group Ltd 0.2825 -3 -26 $ 88,825,093.00
PGC Paragon Care Limited 0.315 -3 80 $ 110,691,220.19
BPH BPH Energy Ltd 0.061 -3 42 $ 40,560,082.73
PYC PYC Therapeutics 0.14 -3 -28 $ 445,329,654.42
MVF Monash IVF Group Ltd 0.935 -4 46 $ 364,308,575.40
PXS Pharmaxis Ltd 0.13 -4 46 $ 56,800,076.75
OSL Oncosil Medical 0.046 -4 -65 $ 36,447,791.52
AMT Allegra Orthopaedics 0.23 -4 48 $ 24,025,616.69
MEM Memphasys Ltd 0.063 -5 -48 $ 49,115,056.89
AGH Althea Group 0.255 -6 -49 $ 84,349,491.88
CMP Compumedics Limited 0.39 -6 -8 $ 69,093,549.72
IMM Immutep Ltd 0.525 -6 110 $ 444,013,856.52
1AD Adalta Limited 0.087 -6 -44 $ 21,085,443.71
NXS Next Science Limited 1.21 -7 -2 $ 237,568,690.80
AHC Austco Healthcare 0.14 -7 56 $ 39,786,453.14
RAP Resapp Health Ltd 0.069 -7 -34 $ 58,425,401.24
ILA Island Pharma 0.33 -7 $ 14,171,244.78
OPT Opthea Limited 1.295 -7 -57 $ 445,774,497.07
CHM Chimeric Therapeutic 0.3 -8 $ 62,191,888.32
JTL Jayex Technology Ltd 0.023 -8 -50 $ 5,732,256.40
RCE Recce Pharmaceutical 0.91 -8 -18 $ 159,884,819.24
CAJ Capitol Health 0.375 -9 50 $ 383,115,579.44
RHT Resonance Health 0.096 -9 -40 $ 40,094,122.35
MXC Mgc Pharmaceuticals 0.053 -9 130 $ 129,821,176.17
BOT Botanix Pharma Ltd 0.0675 -9 -33 $ 65,200,518.96
ICR Intelicare Holdings 0.1 -9 -64 $ 4,810,063.10
DXB Dimerix Ltd 0.2725 -9 -8 $ 88,240,258.15
PNV Polynovo Limited 1.7275 -10 -26 $ 1,134,280,495.46
MMJ MMJ Group Hlds Ltd 0.073 -10 -21 $ 16,786,640.91
TLX Telix Pharmaceutical 5.71 -10 217 $ 1,593,557,555.72
UBI Universal Biosensors 0.765 -10 173 $ 134,184,399.91
OIL Optiscan Imaging 0.215 -10 87 $ 139,091,760.45
GSS Genetic Signatures 1.38 -11 -34 $ 197,390,019.48
ACR Acrux Limited 0.115 -12 -38 $ 32,591,038.87
NEU Neuren Pharmaceut. 1.99 -12 75 $ 250,671,695.24
PCK Painchek Ltd 0.045 -12 -53 $ 50,931,215.96
M7T Mach7 Tech Limited 0.925 -12 -14 $ 218,303,166.00
CPH Creso Pharma Ltd 0.11 -12 224 $ 132,172,038.02
4DX 4Dmedical Limited 1.33 -12 -48 $ 267,463,376.64
APH AP Hemp Ltd 0.275 -13 49 $ 21,150,630.88
VBS Vectus Biosystems 1.5 -13 53 $ 47,805,754.50
CBL Control Bionics 0.605 -13 $ 29,191,925.48
SUD Suda Pharmaceuticals 0.047 -13 7 $ 22,117,719.36
LBT LBT Innovations 0.1175 -13 -10 $ 33,248,243.86
DOC Doctor Care Anywhere 0.67 -14 $ 124,585,216.24
IHL Incannex Healthcare 0.35 -14 293 $ 416,942,161.04
CTE Cryosite Limited 0.35 -14 37 $ 17,083,347.05
OSX Osteopore Limited 0.275 -14 -53 $ 32,835,106.64
NYR Nyrada Inc. 0.24 -14 23 $ 29,496,683.28
ZNO Zoono Group Ltd 0.395 -15 -78 $ 68,604,773.41
TD1 Tali Digital Limited 0.028 -15 -10 $ 26,093,362.09
IMC Immuron Limited 0.135 -16 -58 $ 30,678,290.46
S66 Star Combo 0.285 -16 -15 $ 38,393,053.67
MDC Medlab Clinical Ltd 0.155 -16 -31 $ 51,326,350.65
NC6 Nanollose Limited 0.081 -16 -2 $ 12,043,595.81
ALC Alcidion Group Ltd 0.325 -17 150 $ 366,824,168.20
EPN Epsilon Healthcare 0.12 -17 -49 $ 21,197,764.39
EXL Elixinol Wellness 0.091 -17 -39 $ 28,389,818.34
RNO Rhinomed Ltd 0.31 -17 77 $ 76,142,739.60
BDX Bcaldiagnostics 0.16 -18 $ 22,359,515.54
DVL Dorsavi Ltd 0.018 -18 -53 $ 6,325,786.30
CU6 Clarity Pharma 1.085 -20 $ 177,033,191.67
ADR Adherium Ltd 0.015 -21 -48 $ 31,923,714.78
LDX Lumos Diagnostics 0.9075 -21 $ 136,638,695.83
PIQ Proteomics Int Lab 0.875 -21 48 $ 92,098,890.63
BD1 Bard1 Life Sciences 1.06 -23 36 $ 96,991,340.60
RSH Respiri Limited 0.067 -23 -72 $ 46,984,651.35
SHG Singular Health 0.175 -24 $ 11,644,826.76
BNO Bionomics Limited 0.135 -25 12 $ 136,295,560.44
GLH Global Health Ltd 0.35 -29 52 $ 19,813,287.20
OSP Osprey Med Inc 0.775 -30 -71 $ 20,526,833.60
BXN Bioxyne Ltd 0.023 -34 92 $ 14,723,344.15
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Medical Developments (ASX:MVP) was the best performer for the month, after releasing its FY21 annual report which detailed a strong rebound of Penthrox sales in the first half. Gross revenue in FY21 was $25.7m, growing 9% from the prior year. Insiders have also been buying the company shares, which led to the stock price rising by over 30% during the month.

Investors have been buying Atomo Diagnostics (ASX:AT1) since its COVID-19 rapid antibody and antigen tests were added by the TGA to the ARTG (Australian Register of Therapeutic Goods). Around 50,000 antibody test units were sold in H2 FY21, with antigen test unit sales set to commence in Q4. The company also expects demand to step up very significantly in Q1 FY22.

Antisense (ASX:ANP) presented its ATL1102 proteomics data at the World Muscle Society 2021 Virtual Congress, held on 20-24 September. ANP’s ATL1102 drug has been shown to be effective in reducing multiple sclerosis (MS) lesions in a Phase IIa clinical trial, with the data also having been published in the medical journal, Neurology.

Shares in biotech Cellmid (ASX:CDY) lifted after it provided an outlook guidance for FY22. Cellmid says its store and salon sales are likely to continue to be affected in the first half of FY22 in Australia, but will improve in the second half. The company will also continue to monitor the situation in the US for a possible re-entry into the market.

Recently listed Lumos Diagnostics (ASX:LDX) is down 19% for the month, after withdrawing an announcement outlining an economic evaluation of its FebriDx respiratory disease test. The company said it was not intended to constitute a financial forecast of the potential market for FebriDx.

 

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