At the RBC Global Healthcare Conference, held on 14-15 May, RBC's Healthcare Desk Sector Strategist gauged biotech investor sentiment in an interview with Biotech TV.
The strategist, Chris McCarthy, says he is trying to figure out investment sentiment and positioning.
When asked about what he heard in the conference hallways, Chris said biotech investors are focused on the upcoming binary catalysts.
Chris McCarthy highlighted some companies that have upcoming data readouts.
He adds that with data readouts, the investors see outsized stock moves, and they should start focusing on these companies as the readouts approach, including:
- Agios Pharmaceuticals Inc (NASDAQ:AGIO): Two key milestones for 2024, including topline data from the Phase 3 ENERGIZE-T study of mitapivat in transfusion-dependent thalassemia in Q2 and filing for FDA approval of mitapivat in thalassemia by year-end.
- Earlier this year, Agios Pharmaceuticals said the Phase 3 ENERGIZE study of mitapivat in adults with non-transfusion-dependent (NTD) alpha- or beta-thalassemia achieved its primary endpoint of hemoglobin response.
- Caribou Biosciences Inc (NASDAQ:CRBU): At the 2024 ASCO Annual Meeting (May 31-June 4), Caribou plans to present a poster with data from the ongoing ANTLER Phase 1 trial data for CB-010.
- Caribou plans to initiate the GALLOP Phase 1 trial in adult patients with lupus nephritis and extrarenal lupus by the end of 2024.
- Caribou plans to present initial dose escalation data from the ongoing CaMMouflage Phase 1 clinical trial by year-end 2024.
- Truist Securities writes that Caribou shares were oversold after the recent updates in March, and the data coming up at ASCO is an opportunity for the company to reinvigorate investor interest.
- Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP): Corbus plans clinical data update at ASCO 2024 for the China dose escalation study.
McCarthy notes that different investors have different strategies. He says fundamental work ahead of time is important, including mechanisms and market opportunity, and scenario analysis is another critical step as the event approaches to thinking about what stock reactions would be.
Then, investors should think about the next steps and what could be the next catalysts.
While answering what are the big picture themes investors are thinking about.
He said it would be more market-related and less biotech. He noted hallway conversations and said the talks are about the "short books in healthcare investing."
McCarthy says there is a lot of market-neutral money in healthcare, and a lot is going underneath the hood of the stock.
He adds that stocks on the long side are going down, and stocks that are heavily shorted are going up, and this was continuing before the 'meme craziness.' So, from the portfolio management perspective, this has been the main topic of discussion.
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