Dow Jones Futures: Zogenix Dives; GW Pharma, PhaseBio Pop On FDA News

Dow Jones futures fell slightly early Tuesday, along with S&P 500 futures and Nasdaq futures. After the close, the FDA rejected a Zogenix (ZGNX) drug for a rare form of epilepsy, good news for GW Pharma (GWPH). Meanwhile, the FDA granted Breakthrough Therapy status to a PhaseBio Pharmaceuticals (PHAS) compound. The FDA also OK’d a Bio-Rad Laboratories (BIO) blood typing and screening system. Zogenix stock plunged after hours, while GW Pharma stock and PhaseBio stock rallied. Bio-Rad stock was quiet overnight.


Dow Jones Futures Today

Dow Jones futures fell 0.15% vs. fair value. S&P 500 futures dipped 0.1%. Nasdaq 100 futures were a fraction below fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Current Stock Market Rally

The Dow Jones fell 0.3% on Monday, dragged down by Boeing (BA), even as Apple (AAPL) broke out. The Nasdaq composite rallied for a 0.2% gain and the S&P 500 edged up 0.1%. All three major indexes are about 2% from their all-time highs as the current rally is on the cusp of a long bull market phase.

Zogenix Stock Pained, GW Pharma Gains

The FDA late Monday refused to review Zogenix’s Fintepla for treating Dravet, a rare form of epilepsy. Zogenix stock plunged 31.5% in late trading. Zogenix stock had tried to break out past a 55.10 cup-with-handle buy point on March 29 and April 1, but never closed above the entry.

Meanwhile, GW Pharma stock climbed 3.5% late. Shares are working on a 182.33 buy point from a short flat base after breaking out from a wild, very deep cup with handle following earnings in late February.

GW Pharma sells Epidiolex, a cannabinoid-based drug, to treat Dravet and other types of childhood epilepsy. The FDA approved it last June.

PhaseBio Stock Jumps

The FDA declared PhaseBio Pharmaceuticals’ PB2452 a Breakthrough Therapy, giving the compound a better path for approval. The PhaseBio compound is a reversal agent for AstraZeneca‘s (AZN) anti-clotting medicine, Brilinta.

PhaseBio stock surged 34% late. Shares shot up 17% to 12.57 in Monday’s stock market, hitting a new closing high. PhaseBio stock came public at 5 a share in October, fell to 2.55 in November but has been on a tear since March 12.

Bio-Rad Stock Near Buy Point

The FDA OK’d a Bio-Rad Laboratories system for blood typing and screening for small to midsize labs. Bio-Rad stock was not trading late Monday. Shares rose 0.4% to 309.84. Bio-Rad stock is working on a 324.04 cup-with-handle buy point.

How To Play Biotech Sector

Individual biotech stocks are subject to sudden spikes on news. One way to minimize stock-specific risk is via ETFs. Among the best ETFs for biotechs, iShares Nasdaq Biotechnology ETF (IBB) is near a buy point. The SPDR S&P Biotech ETF (XBI) is just above an entry.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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Originally posted 2019-09-19 23:37:15.


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