US medicine sector sees "bull stocks": 10 times in 3 trading days

As the first major segment of Nasdaq, the biomedical sector has been a concentration camp for US stocks. A pharmaceutical company called Aquinox Pharmaceuticals soared to $18.85 during the US stock trading session on the 10th. You know, the stock closed at $1.79 last Thursday.

Last Thursday, Aquinox Pharmaceuticals' share price was $1.79, and the stock soared 482% to $10.42 last Friday. During the US stock trading session on the 10th, Aquinox Pharmaceuticals' stock price soared to 55.75 US dollars. Although it closed down to 18.88 US dollars, the stock price also increased nearly 10 times in three trading days, becoming the biggest gainer on the 10th Nasdaq.

Aquinox Pharmaceuticals' stock was sizzled because the company recently said it found important data in a medical study of bladder pain. Aquinox Pharmaceuticals said it will continue to study AQX-1125, a new drug for bladder pain and eczema, after evaluating the previous failed study, and will discuss how to conduct clinical trials with regulatory agencies in the US and Europe. Financial services agency Cowen & Co analyst Bella said that from the current situation, the possibility of successful development of AQX-1125 increased.

Although Aquinox Pharmaceuticals has a market capitalization of only $200 million, the company has won the favor of many funds and companies. A report by hedge fund Baker Brothers Advisors shows that the fund holds 39.8% of Aquinox Pharmaceuticals' stock. In addition, pharmaceutical companies Pfizer and Johnson & Johnson also hold shares in Aquinox Pharmaceuticals.

This shows that investors' enthusiasm for the concept of biomedicine remains undiminished. In mid-June, a biotech company called Axovant Sciences was listed on the New York Stock Exchange. The company was founded less than a year ago. The CEO is only 29 years old. The company has only 7 employees and has not yet realized any income, but On the first day of listing, the stock price rose nearly 100%, and the valuation was close to $3 billion. As for the reasons for optimistic about the biomedical sector, some market participants said that with the aging of the population in the United States and developed countries, the demand for health care is growing much faster than the economic growth. The huge market and the release of policy benefits have increased investor enthusiasm for the US biotech sector. US stock columnist Jeff Reeves said earlier that the biomedical sector will remain the king of the US stock market in 2015.

However, some analysts pointed out that biopharmaceutical stocks give investors the impression that the market is fierce but the fluctuation is too large and the trend is difficult to predict. Once the share price of biopharmaceutical companies declines, the range may be "amazing". After Yellen’s valuation of biopharmaceutical stocks was too high in July last year, the Nasdaq Biotech Index fell nearly 6% within three days.