Funtleyder: Biotech stocks may not see same good performance in 2013 – (ARNA, VVUS, OREX, MNKD, AVEO, PPHM)

Posted by on Dec 27, 2012

2012 has been a good year for biotech stocks but one portfolio manager doesn’t predict the same in the next year. But nearly same performance should be seen for managed care and hospital stocks in 2013.

Poliwogg fund manager Les Funtleyder told CNBC yesterday that this year on the whole was good year for biotech but he would be surprised if same trend seen again. Funtleyder clarified one of the reasons behind good performance of biotech stocks was that the industry has no connection with Obamacare, so investors focused instead on the drug development pipeline.

He added citing implementation of Obamacare both managed care and hospital stocks should put in another repeat performance next year.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) was up on Wednesday as the company is reportedly ending the year with investors betting it will perform better than Mountain View-based VIVUS, Inc. (NASDAQ:VVUS) and a third competitor, Orexigen Therapeutics, Inc. (NASDAQ:OREX), also based in San Diego.

A quick look on Arena’s price history reveals beta used to measure the volatility or systematic risk in comparison to the market as a whole was 0.25 and the percentage change in the price over the past 52 weeks remained at +358.12%. The price range in those 52 weeks had a best score of $13.50 on Jun 27, 2012 while lowest level during that period was $1.51 on Jan 05, 2012.

MannKind Corporation (NASDAQ:MNKD) jumped on Wednesday after its chief executive officer acquired 40 million MannKind shares. The stock moved down -7.60% in this year and its price history showed most recently beta was at 0.54. Overall during the last 12 months, the percentage change in the price was -11.15%, hitting the highest of $3.48 on Jan 30, 2012 while lowest level in that period was $1.57 on May 18, 2012.

AVEO Pharmaceuticals, Inc.(NASDAQ:AVEO) rallied following a news that Dr. Ronald DePinho, president of The University of Texas M.D. Anderson Cancer Center, is going to retire from his position on Aveo Oncology’s board, effective Dec. 31.

AVEO shares rallied -53.54% so far in 2012. The stock most recently had a beta value at 0.92 and the percentage change in the price over the last fifty two weeks remained at -53.92%. The price range in that 1-year period had a best hit of $17.51 on Dec 30, 2011 while lowest level in the same period was $5.80 on Nov 16, 2012.

So far, the share price of Peregrine Pharmaceuticals (NASDAQ:PPHM) jumped 13.11% in this year and stock’s price history revealed that beta was maintained at 1.27 and the percentage change in the price over the last fifty two weeks remained as 8.33%.

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