IBB Leads Biotech ETFs in Weekly Update, Mylan Tops Large-Caps
Mylan contributed to IBB’s large-cap performance
The large-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB) outperformed the large-cap stocks of other biotech ETFs for the week ended November 20, 2015. IBB’s large-cap stocks were the best performers with a return of 3%. The iShares US Healthcare Providers ETF (IHF) was the worst performer with a return of 1.2% for the same period.
The above graph reflects the returns of large-cap stocks of various biotech ETFs compared to the SPDR S&P 500 ETF (SPY) for the week ended November 20. SPY outperformed other biotech ETFs with a return of 3.4% for the same period.
Mylan topped the large-caps with new launches and share repurchase plan
Mylan (MYL) stock rose 6.4% for the week ended November 20, 2015. It went up on a couple of new drug launches and a share repurchase plan. According to the press release, MYL has announced “the U.S. launch of Almotriptan Tablets USP, 6.25 mg and 12.5 mg, the generic version of Janssen Pharmaceutical’s AXERT®. Mylan received final approval from the U.S. Food and Drug Administration ([or] FDA) for its Abbreviated New Drug Application ([or] ANDA) for this product, which is used for the acute treatment of migraine attacks in adult patients with a history of migraine with or without aura.”
MYL also announced “the U.S. launch of Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate and Amphetamine Sulfate Tablets (mixed salts of a single entity amphetamine product), 5 mg, 7.5 mg, 10 mg, 12.5 mg, 15 mg, 20 mg and 30 mg, which is the generic version of Teva’s Adderall® Tablets…indicated for the treatment of attention deficit hyperactivity disorder ([or] ADHD).”
On November 16, 2015, Mylan announced that its board of directors has authorized the repurchase of ordinary shares in an amount up to $1 billion. The stock closed at $51.87 and was trading above the 50-day and 100-day moving averages. MYL has a weight of about 4.0% in IBB.
The other large-cap stocks that performed well are Vertex Pharmaceuticals (VRTX), Illumina (ILMN), and Regeneron Pharmaceuticals (REGN), with returns of 6.1%, 5.3%, and 5.6%, respectively.
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