Contrary to the broader markets, BioWorld’s Cancer Index is down by 22% this year, losing more than 7% throughout the month of July, despite oncology driving several high-money deals and accounting for 38%, the lion’s share, of financings. Both the Nasdaq Biotech Index and the Dow Jones Industrial Average are tracking similarly for the year, and are up by 13.2% and 15.2%, respectively, as of Aug. 10.
Executives of TG Therapeutics Inc. have promised a big year in 2021 and the company got off to strong start with accelerated FDA approval of umbralisib in marginal zone lymphoma and follicular lymphoma. Branded Ukoniq, the drug is the first oral, once-daily inhibitor of PI3K delta and CK1 epsilon and TG’s first commercial product. Pricing for Ukoniq has not yet been disclosed.
The exceptional and speedy response in bringing safe and effective vaccines and therapeutics to combat COVID-19 has kept investors engaged and supportive. As a result, not only have companies involved in this research and development benefited, but so has the sector as a whole. Those biopharma companies have enjoyed significant jumps in their share values, with the BioWorld Drug Developers index closing up 4.6% in December and up 29% for 2020.
The BioWorld Drug Developers index is currently tracking up more than 9% in value so far this month and is on target, with a handful of trading days left before the end of the year, to close up over 35% for 2020, well ahead of the general markets.
As the year draws to a close, there is no doubt that investors have been keeping a close watch on emerging companies developing cancer therapies as well as those with new vaccines and treatments aimed at defeating COVID-19.
Both phase III studies of ublituximab, an anti-CD20 monoclonal antibody from TG Therapeutics Inc., of New York, met their primary endpoints of significantly reducing the annualized relapse rate in multiple sclerosis (MS) patients. Company stock (NASDAQ:TGTX) received a solid bump Dec. 10 as shares closed 40.85% higher at $41.72. T
Although investors’ enthusiasm has cooled toward the biopharma sector, particularly large cap companies, over the past couple of months, they haven’t neglected it entirely and have been willing to reward those companies reporting positive news about their pipeline progress. As a result, a number of companies returned significant gains in their share valuations in August, contributing to the BioWorld Drug Developers index pushing more than 4% higher in the period and up 6% year-to-date.
Overall, data presented at the American Society of Clinical Oncology virtual meeting over the weekend appear to have garnered investor approval, with the BioWorld Cancer index advancing 3%, by market close Monday, and a further 1.7% by the closing bell today.
Blue chip public biopharmaceutical companies continued their positive trajectory in May, with the BioWorld Biopharmaceutical index recording an 8% jump in valuation and contributing to its year-to-date performance of approximately 17%.
The American Society of Clinical Oncology (ASCO) annual meeting will be closely watched by analysts and investors alike. There is no doubt that favorable data presented at the event will advance a company's stock valuation significantly. Equally, candidate cancer therapies that do not live up to expectations will see their developers face the ire of investors.