Biotechs Under Pressure Again, As Valeant Saga Enters New Phase of Fuckery

This is getting ridiculous. The cancer that is VRX is spreading far and wide into the bowels of the pharma industry, applying ruinous losses to a wide array of companies. This is reminiscent of Enron and how its demise had an odious effect on other utilities, even though none of them were fraudulent. This, without question, is going to result in splendid buying opportunities, whenever people come to grips with the fact that not all biotech follow the business model of Valeant.

Like I’ve said on numerous occasion, the shareholder bases for the majority of these stocks are fast money traders, totally ignorant to the fundamentals of their investments. Therefore, selling hits a fevered frenzy at the first sign of trouble. This process has repeated itself, consistently, since the beginning of time.

Here are the notable losers, exing out the small cap offal.

ANAC -7.5%

HZNP -6.2%

AMAG -7.5%

ENDP -7.6%

REGN -5%

MDVN -5%

INCY -4.4%

BMRN -4.3%

LLY -4%

ALNY -4%

ALXN -4%

MNK -6.5%

MYL -4.5%

The fact that the sell off is extending into the major pharma names makes this story all the more notable.

Separately,  markets are rallying again, completely ignoring and isolating the sell off to just the drugs.