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Biotech Forum Daily Digest: Dynavax's Crazy Few Days; Biotech Rebounds; Spotlight On Kamada


The biotech sector got off to a good start to the holiday-shortened trading week on Tuesday, with the main indices rising over one percent on strength across the board.

The shareholders of Dynavax Technologies have had a wild ride over the past two trading sessions. Why I think the optimists will be right on this small cap concern.

All the other notable news, events, and analyst ratings from across the biotech industry and a spotlight on small cap concern Kamada are below.

In general, the art of government consists of taking as much money as possible from one class of citizens to give to another. —Voltaire

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Biotech had a strong start to the holiday-shortened trading week, and gained more than one percent during Tuesday. We saw strength both in the small and large cap portions of the sector as well.

Barron's had one of its frequent "roundtables" in this weekend's issue, getting views from some of most prominent strategists on Wall Street. Healthcare came in as the second most popular sector in the economy to invest in right now. The only of the ten market sectors with a more favorable view currently was Technology.

The sector is down some 5% since early July of 2015, the worst performance of any sector. Shockingly, losses exceed that of the energy sector, which is still struggling with collapsed crude and natural gas prices and has seen a large drop in profits. Collectively the Healthcare group now sells at the lowest valuations.

Investors were worried back in the early '90s that then-President Bill Clinton would implement the First Lady's so-called "Hillarycare" platform, but that fear never came to pass. The sector then became one of the strongest performers in the market for several years. Hopefully we will look back a few years from now and note the accuracy of a favorite Mark Twain quote: "History doesn't repeat, but it does rhyme."

It has been a couple of crazy days of trading for shareholders of Dynavax Technologies (NASDAQ:DVAX). On Friday the stock lost more than 30% of its value as the November Ad Comm panel was unexpectedly cancelled for its hepatitis B vaccine "Heplisav-B". As I noted late Friday on the Live Chat feature of the Biotech Forum, I thought this was an overreaction in the market, and added a third to my core holding in this undervalued name at $11 a share.

Sunday the company put out a release that gave more clarification on why the Ad Comm panel was cancelled for the moment. It gave insight on why the mid-December PDUFA date for this biologic is still on, and likely to be approved. I covered this Monday in my instablog (which automatically goes to my real-time followers).

In Tuesday's trading, the stock was up nearly 30% as investors incorporated this latest information. Analysts also made some positive comments, which we will cover in the next section.

Having an easier time of it this week are shareholders in microcap CoLucid Pharmaceuticals (NASDAQ:CLCD). This stock more than doubled in trading Tuesday after...