More positive news needed to lift pressured biotech sector- Jefferies

Oncternal Therapeutics

28/04/2022 19:05

** Biotech needs more positive events and datasets as the
sector remains hammered by weakened market sentiment - Jefferies
    ** The Nasdaq biotechnology index  .NBI  is down 1.3%, on
track for a third straight session of losses; the index had
fallen 18.4% YTD up to the last close
    **  iShares Nasdaq Biotechnology ETF  IBB.O  down 22%, while
the SPDR S&P Biotech ETF  XBI.P  had fallen 32% so far this year
    ** Biotech stocks have had a few rough months as M&As dry up
and investors prefer private markets over public
    ** Challenging to get constructive on the sector as positive
events are "few and far between" amid several negative data
readouts and regulatory delays - Jefferies
    ** Negative updates from biotech in April include Nektar
 NKTR.O  cutting its workforce after its cancer drug failure,
Oncternal Therapeutics  ONCT.O  deprioritizing its bone cancer
therapy and BioCryst  BCRX.O  pausing trials of its blood
disorder treatment  urn:newsml:reuters.com:*:nL3N2W62NF  urn:newsml:reuters.com:*:nL3N2WB2YQ
    ** Brokerage says more positive events are needed to "change
the tone" and the sector could see further pressure until that
happens 
    ** Highlights biggest catalysts for 2022 could include
late-stage data on Roche's  ROG.S  immunotherapy tiragolumab in
Q2 and data on Biogen's  BIIB.O  second Alzheimer's drug,
lecanemab, in H2

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))