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In a week dominated by fears of a Chinese property company collapse, biotechs fared better than might have been expected. 

“I have noticed the biotech sector has held pretty well,  wrote Real Money’s Bret Jensen in a recent column. “Usually increases in volatility send these stocks down more than the overall market, but the sector has done okay … This makes sense as biotech has little exposure to China or the potential for slowing Chinese growth.

Axsome Therapeutics  (AXSM) – Get Axsome Therapeutics Inc Report, a biotech company that focuses on manufacturing drugs to treat depression, Alzheimer’s disease agitation, migraine, narcolepsy and fibromyalgia, is catching tailwinds, according to Jensen. Its stock dipped in August after its new drug application for the compound AXS-05 that will treat several central nervous system conditions was delayed. “The FDA found ‘deficiencies’ in its marketing application,” Jensen wrote. Jensen, who built up a large position in the stock, said a few weeks later the FDA chose not to seek more information, though it is still reviewing the application.

Another positive factor is that the FDA recently accepted the new drug application for AXS-07 that will treat migraines. Axsome has also initiated a late-stage trial for AXS-012 for the treatment of narcolepsy.

TheStreet RecommendsINVESTINGBret Jensen: Two Biotechs to Consider10 seconds agoINVESTINGGuilfoyle: Oracle Not Likely to Rebound Soon15 minutes agoPRESS RELEASESNASA Releases Interactive Graphic Novel “First Woman”33 minutes ago“All in all, things appear to be looking up for Axsome,” Jensen wrote.

Another biotech company, TG Therapeutics  (TGTX) – Get TG Therapeutics, Inc. Report, which is developing treatments for multiple sclerosis and chronic lymphocytic leukemia, could have reached its bottom. Shares of the company are still 40% down from 2021 overall after overcoming some hurdles.

“Like most companies in initial rollouts of newly approved products, the company has hit some ‘hiccups’ in its initial efforts to market UKONIQ, which just won approval in February of this year,” Jensen wrote. Management also offered some conservative guidance in early August which caused a 20% selloff in the stock.”

Analyst firm Cantor Fitzgerald sees TG Therapeutics as a potential acquisition candidate.

“So do I, and it is a potential buyout target given many larger names are trying to expand in the oncology space,” Jensen wrote.

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