BiQ: Recap for the Week Ending April 25, 2025

Welcome to the BiQ Weekly Recap #14!

I want to welcome the new Biotech iQ members who joined this past week--thank you for joining the BiQ Community. I've been a biotech investor for over two decades, but BiQ is a new service, and I'm humbled and grateful for its warm reception from the biotech community.

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While I publish several articles and updates each week, please remember that Biotech iQ is much more than a newsletter service. BiQ's most valuable tools are found on the Biotech iQ website (www.biotechiq.com). These include:

• The Active Portfolio displays a list of all companies currently included in Active Coverage, together with their outlook and ratings.
• The Catalyst Tracker & Events Calendar displays a quarter-by-quarter list of upcoming catalysts and a calendar of forthcoming events.
• The News Feed displays an RSS feed of all press releases from companies covered at Biotech iQ (if the company provides RSS services).
• BiQ Community Chat

Weekly Overview

It was a good week for the XBI. The index closed last Friday at 75.95, opened Monday at 75.31, and closed Friday at 80.24 for a weekly gain of 5.65%. It reached an intra-week high of 81.17 and a low of 74.67 for an intra-week range of just under 9%.

Zooming out to the one-month chart, we can see the index seemed to bounce off the 66 level. It's difficult to determine whether this remains a short-term technical bounce or the beginning stages of a recovery. Until proven otherwise, I plan to remain cautious and to expect continued volatility.

Zooming out further to the five-year chart, we can see that the index bounced on high volume from the 66-ish level, almost reaching 5-year lows near 64. The RSI has also recovered from heavily oversold conditions. From this perspective, I feel cautiously optimistic that the worst damage might be behind us; however, I would prefer to see a few more weeks with high-volume green bars on the chart. As I mentioned above, I plan to remain on defense for now and hold excess liquidity until we see a confirmed uptrend.

During periods of high volatility, it's more important than ever to remember a few fundamental principles:

• The US biotech industry remains as innovative and dynamic as ever, only at much more attractive valuations than we've seen for a while.
• Despite disruptions at the FDA, I believe the agency remains committed to fostering innovation, though there may be some bumps along the way. The US biotech industry remains the envy of the world, and it's in no one's interest to change that.
• Over the long term, companies will continue to trade on fundamentals. Buying quality stocks when they're cheap and selling when they're expensive is still a winning strategy for long-term investors.

That said, proper risk management is critical to long-term success and to avoid the permanent destruction of capital, especially in times of increased market volatility. This means maintaining adequate liquidity reserves to remain rational and focused while others panic.

While I expect volatility may be the new normal for the foreseeable future, I am cautiously optimistic that market conditions will soon begin to stabilize; however, I still plan to maintain a more defensive posture until there are clear signs of a trend reversal.

With regards to trading, I am happy with my current portfolio composition. I continue to sell covered calls where appropriate and have only been adding cautiously to high-conviction names, primarily by using deep OTM puts to take advantage of discounted pricing while maintaining additional downside protection.

Biotech Industry News & Commentary

I am away from the office and was unable to prepare the Biotech Commentary section for this week. Premium members were notified of my travel plans in advance last week (see Travel Notice.)

BiQ Service Updates

• Many users (including myself) have experienced difficulty with the Events Calendar, where events fail to load. This issue is being investigated.
• Over the past few months, several members have expressed an interest in seeing coverage for more speculative names here at Biotech iQ. I usually follow more speculative companies on the BiQ Watch List and only add them to the BiQAP after I feel they have demonstrated evidence of sufficient derisking. However, given the success of the BiQAP, which is designed to identify low-risk, high-alpha opportunities, I may consider adding a second portfolio for higher-risk companies that I find promising--provided there is sufficient member interest. If anyone has any thoughts regarding adding a speculative portfolio, please share them in the comments section below.

BiQ Past Performance

For the current performance of the BiQ Active Portfolio (BiQAP), please visit the BiQ Active Portfolio page. The past performance spreadsheet is shown below.

BiQ Membership Discounts

For free members interested in an annual Premium membership to Biotech iQ, I am now offering two new discount options for a limited time.

50% Off your First year: https://www.biotechiq.net/50-off-your-first-year

20% Off for Life: https://www.biotechiq.net/20-off-for-life

Click here for more information about Biotech iQ, and to see what's included in a Premium membership. A free 7-day trial and monthly membership options are also available at www.biotechiq.net.

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