Will the Bear Escape Tonight from the Market? Regeneron and Severe Asthma Patients Good News

The Stock Market

The Confused and Confusing Stock Market

The stock market is confused and confusing. No analysts’ speculations are materializing and no satisfactory explanations for the market’s agitation and selloff. Although not an unprecedented situation, what makes it strange and more puzzling than previous market’s selloffs is that it is happening at a time when all the prerequisites of a healthy economy exist. Historically high are the employment rate, the firms’ revenues, and income. Historically low is the unemployment and guess what? Inflation remained unthreatening.    

Looking at the biotech sector, that we know well, we see unprecedented progress in breakthrough treatments; changing the way diseases have been treated; from the beginning of human existence on the Planet.

Having said that we still abide by the rule of thumb which dictates that we should always take advantage of selloffs to accumulate the stocks we selected and still appreciate. However, we need to know the fair prices our picked stocks can and should reach in 2019. Still we have yet to know, and need to confirm, the bottom the unwarranted selloff created for our picked stocks.   

Most analysts seem to believe the reason for the selloff is investors’ worries about the outcome of the Chinese negotiations. Not that the negotiations have failed, but that they might fail. This reasoning does not hold water. Investors, living the best economy, would not sell their stocks based on a possible failure but after the failure.

What Are Investors Afraid of Regarding the American/Chinese Negotiations?

Investors’ fear that no matter what the outcome of these negotiations there will be powerful critics making it look bad. With many sophisticated philosophical answers, several investors would buy in to the fear with the goal of extending the lifespan of the selloff and to confirm the critics’ negative points of views       

The truth is the selloff was not initiated by shareholders who believe in the firms they have selected. We do not believe we will ever know what caused the unwarranted selloffs. All we know is that many investors have gotten used to these selloffs and have consequentially learned how to deal with them to their favor.  Especially when they only last for a short period and do not repeat every other day.

The Prohost Letter Delay

Three days ago we were ready to post the Prohost Letter #431. We had to postpone until we learned the cause of the selloff. Not knowing the bottom of stocks’ declines makes it difficult to predict the summit of rallying stock’s. The fair target the stocks could reach in 2019.

Usually stock prices’ estimated targets reflect the fair evaluation of the stocks based on the values of their technologies, their pipeline products, their clinical trial results and their revenues’ and incomes’ growth, if they have any. However, the problem is those factors, although the most fundamental, are not the only ones that can determine the time stock prices might take to reach their  fair prices. In other words, their targets.       

We rely on stocks’ targets to know when to stop buying, when to accumulate and when to sell. The game being played this week will hopefully end soon. We have learned the meeting between the Americans and the Chinese will be held tonight. Let us wait and see.

In any case, we will post a Letter that we hope will increase our subscribers’ knowledge about: the genetic revolution, gene replacement therapy, gene editing, antisense and CAR-T as well as the firms that own and specialize in each treatment approach.

Some News About Regeneron and Sanofi

Regeneron Pharmaceuticals (REGN) and its collaborator Sanofi (SNY) announced the approval of Dupixent® (dupilumab) for asthma by the European Commission’s (EC). It’s interesting and good news for some people with asthma and for the two firms.  Dupixent, now approved in the European Union (EU), for use in adults and adolescents 12 years and older as an add-on maintenance treatment for severe asthma with type 2 inflammation characterized by raised blood eosinophils and/or raised fractional exhaled nitric oxide (FeNO) who are inadequately controlled with high dose inhaled corticosteroid (ICS) plus another medicinal product for maintenance treatment. 

Asthma and Dupixent

People with severe asthma still need a drug that’s not made up of the usual bronchodilators and steroids which are extremely effective in many asthmatics but not all of them.  Dupixent is the first and only treatment approved for patients in the EU with severe asthma characterized by multiple biomarkers of type 2 inflammation. The product is a human monoclonal antibody that inhibits the signaling of interleukin-4 (IL-4)and interleukin-13 (IL-13) which have a central role in type 2 inflammation. The product also reduces type 2 inflammatory biomarkers including, among others, immunoglobulin E (IgE) and eotaxin-3 (CCL26).

Prohost Observations

This is what we call a totally new treatment option. Indicated for asthmatic people whose asthma is severe and inadequately controlled with current treatments, including oral corticosteroids.  

This is good news

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