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Amgen Gained as CVS Sealed the Deal to Sell Repatha

Peter Neil

IBB Continued to Surge as Biotech Stocks Gained

(Continued from Prior Part)

IBB’s large caps gain marginally

The large-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB) gained marginally with a return of 0.3% on November 23, 2015, and underperformed the IBB, but outperformed the SPDR S&P 500 ETF (SPY), which gave a return of -0.1%. The large caps account for ~69.4% of IBB’s portfolio. Out of 15 large-cap stocks, five ended up in the red and ten large-cap stocks gave positive returns. IBB’s large caps include stocks like Shire (SHPG), Alexion Pharmaceuticals (ALXN), and Grifols (GRFS), which gave returns of -0.15%, 1.4%, and 0.1%, respectively.

The above graph reflects the performance of IBB’s large-cap stocks in comparison with IBB and SPY. Since the beginning of November 2015, IBB’s large-cap stocks have underperformed IBB and outperformed SPY. IBB’s large-cap stocks gave an average return of 1.1% while IBB returned 3.4%, and SPY returned 0.65%.

Amgen gained as CVS sealed the deal to sell Repatha

Amgen (AMGN) went up by 1.6% on the news that Repatha will be the only PCSK9-inhibitor on the CVS Health (CVS) commercial formularies. As per the press release, AMGN announced, “CVS Health will provide preferred access to Repatha (evolocumab) through its CVS/Caremark commercial formularies.”

AMGN closed at $162.47 and was trading at 3.9% above its 100-day moving average of $156.45. The stock also witnessed high trading volumes with ~4.1 million shares being traded as compared to the five-day average trading volume of ~2.75 million shares per day. With an RSI (relative strength index) of 56, the stock is neither overbought nor oversold. AMGN’s trailing-12-month price-to-earnings stood at 19.39x. AMGN’s book value per share is $37.05 and with the current price, the stock is trading at a price-to-book value of 4.39x. AMGN has a weight of ~8.6% in IBB’s portfolio.

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