Dyax and Acadia Drove XBI’s Mid-Cap Space
XBI Rose on Strong Healthcare Sector Performance
XBI’s mid-cap stocks zoomed
The mid-cap stocks of the SPDR S&P Biotechnology ETF (XBI) outperformed with a staggering return of 7.8% compared with XBI’s return of 2.8% and the SPDR S&P 500 ETF’s (SPY) return of 1.2% as of November 2, 2015. The mid caps account for 26.4% of XBI’s portfolio and comprise of 26 stocks. The mid-cap holdings of XBI include stocks like Kite Pharma (KITE), BlueBird Bio (BLUE), and Puma Biotechnology (PBYI), which gave returns of 6.3%, 9.4%, and 11.8%, respectively. All 26 mid-cap stocks closed the day with positive returns.
The above graph reflects the performance of the mid-cap holdings of XBI compared with SPY and XBI since October 26, 2015, on a day-to-day basis. During this period, XBI mid caps gave returns of 10.4% in comparison with XBI’s return of 8.1% and SPY’s return of 1.4%.
DYAX and Acadia outperformed in mid-cap space
Dyax (DYAX) rose 28.4% to close at $35.35. The stock went up on the news of Shire (SHPG) acquiring DYAX for an estimated value of ~$5.9 billion as we discussed in part one of the series.
Acadia Pharmaceuticals (ACAD) went up by 15.4% on the news of its new drug application for NUPLAZID. As per the press release, ACAD announced, “the New Drug Application for NUPLAZID (pimavanserin) has been accepted for review by the U.S. Food and Drug Administration (or FDA), and the agency has granted it Priority Review. ACADIA is seeking FDA approval of NUPLAZID for the treatment of psychosis associated with Parkinson’s disease. The FDA granted NUPLAZID Breakthrough Therapy designation for this indication in 2014.”
ACAD closed at $40.18 and was trading above its 20-day, 50-day, and 100-day moving averages. With its current price, the stock is trading at a price-to-book value (or PBV) of 15.8x. ACAD has a weight of 1% in XBI’s portfolio.
Browse this series on Market Realist:
