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IBB Leads Biotech ETFs with Rise of 3.1%

Peter Neil

IBB Leads Biotech ETFs in Weekly Update, Mylan Tops Large-Caps

IBB rises 3.1% for week ended November 20

The markets remained positive for the week ended November 20, 2015, with the S&P 500 rising ~3%. The markets rose as many analysts believed the Fed will increase the interest rate in December 2015.

The biotech ETFs also followed the market trend, with most of them ending up in the green.

  • iShares Nasdaq Biotechnology ETF (IBB) – rose 3.1%
  • Health Care Select Sector SPDR ETF (XLV) – rose 2.8%
  • SPDR S&P Biotech ETF (XBI) – rose 1.9%
  • iShares US Medical Devices ETF (IHI) – rose 2.3%
  • iShares US Healthcare Providers (IHF) – rose 1.2%

The above graph reflects the performance of various biotech ETFs on a week-over-week basis for the month of November 2015. During this period, XBI has outperformed other biotech ETFs and the SPDR S&P Biotech ETF (XBI). XBI is the best performer so far with a return of 4.6%. IHF is the worst performer with a return of -1.5%. The SPDR S&P 500 ETF (SPY) has returned 0.8% for the same period.

Sarepta was the top performer of the week

Sarepta Therapeutics (SRPT) rose by 29.2% for the week ended November 20, 2015. On Friday, November 20, SRPT stock rose ~28%. This came as rival Biomarin Pharmaceutical (BMRN) announced that the FDA (U.S. Food and Drug Administration) posted briefing documents for the Advisory Committee Meeting to review drisapersen for the potential treatment of Duchenne Muscular Dystrophy (or DMD).

However, the FDA’s preliminary review raised some serious questions about drisapersen’s efficacy. This resulted in the fall of BMRN stock. SRPT is also developing a drug for DMD. SRPT stock rose due to the fall of BMRN.

Other stocks that rose were Bluebird Bio (BLUE) and Horizon Pharma (HZNP), with returns of 13.0% and 12.8%, respectively.

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