What About Exelixis

Biotechnology sector closed mostly higher yesterday and the sentiment towards the sector is increasingly positive. Today is another day, though; it is starting on a negative note. Why? There are always reasons for the ups and the downs and the paralysis.

ASCO is coming.

For the three past years, the prestigious conference has been kidnapped by short-sellers, and the same might repeat this year. Still, the prestigious ASCO conference is the best reminder that the biotech sector should not be underestimated. It has provided the best selling novel biological cancer drugs, which are closing in on the traditional chemotherapies.

Bottom line, regardless of how far the critics go in their game of unfulfilled expectations, the long-lasting effect of ASCO will still be in favor of the firms that put on the market far-reaching cancer drugs such as Rituxan, Avastin, Tarceva, Vectibix, Erbitux, Velcade and all the many other biological products that are taking over the management of cancers.

In other news:

Genzyme (GENZ) decided to buy Bioenvision for $345 million, or $6.50 per share, in cash. Why? Why not? This is the logical question/answer. Genzyme is developing a promising drug, clofarabine, with Bioenvision. Of course buying the partner together with the drug for $345 million is smart.
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