|Bid||0.00 x 4000|
|Ask||0.00 x 1100|
|Day's Range||91.70 - 93.23|
|52 Week Range||66.66 - 97.98|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
After weeks of build-up, drug industry watchers began to have real concerns about President Donald Trump’s big drug price speech on Friday. Many of the changes that were mentioned on Friday had been raised before by his administration, including drug price negotiation for certain government programs. Other proposals seemed unlikely to significantly bring down drug prices in the near-term, which Trump described as a goal of the plan.
Healthcare stocks and top healthcare ETFs rallied Friday after President Donald Trump vowed to end to "global freeloading" that has allowed foreign countries to pay less on American-manufactured medicines. The Health Care Select Sector SPDR (XLV), the largest healthcare exchange traded fund, gained 1.5% Friday while the iShares Nasdaq Biotechnology ETF (NASDAQGM: IBB) , the largest biotech exchange traded fund by assets, rose 2.7% and VanEck Vectors Generic Drugs ETF (GNRX) , which focuses on generic drug producers, added 2.2%.
This week, investors were preoccupied with Russia, as the country’s equities fell dramatically after the relations with countries in the West, including the U.S., deteriorated. First in the list, however, is Barclays Capital, as the asset management arm of the British bank said it would shut down a host of exchange-traded notes (ETNs). Russia is second in the list followed by crude oil, which has been on a tear lately thanks to dropping stockpiles in the U.S. Leveraged ETFs and biotechnology stocks close the list. Check our previous trends edition at Trending: Soybean Prices Whipsaw on Trade War Fears.
Singh's more conservative on Gilead Sciences (GILD), writing that its HIV drug Biktarvy is seeing a good launch, but not as strong Genvoya, and Regeneron Pharmaceuticals (REGN), where he sees a strong second half in terms of regulatory approvals as balanced by "burgeoning operating expenses and negative sentiment." He has Perform ratings on both stocks. Moving down the line, he's more bullish on mid- and small-cap biotechs, which are not only benefitting from M&A in the sector, but should also "continue to positively diverge from large-cap biotech" in first-quarter earnings results as well.
Tom Vandeventer, portfolio manager of the Tocqueville Opportunity Fund (TOPPX), which is up nearly 10% so far this year, thinks that trend will continue. Tech and biotech are two major themes running through the fund’s portfolio, which Vandeventer told Barron’s is indicative of the fact that “there are a lot of disruptive technologies that are coming to fruition” in both sectors. The fund focuses more on small- and mid-cap stocks, meaning that M&A is a theme throughout his holdings, in both tech and biotech, bolstered by industry trends (the move to the cloud, the rise of gene-editing therapies, respectively), as well the fact that larger players are flush with cash—thanks to lower corporate taxes and repatriated capital—to facilitate acquisitions.
The first quarter is traditionally not a strong one for biotech earnings for a host of reasons—including fewer shipping days, inventory reductions after year-end price increases, weather disruptions, and annual copay resets in many health insurance plans. The SPDR S&P Biotech ETF (XBI) is up 2.8% to $91.38 today, and the iShares Nasdaq Biotechnology ETF (IBB) is climbing 2.2% to $107.55.
Just as Barron's predicted, this year has seen smaller biotech stocks outperform their larger peers, with the SPDR S&P Biotech ETF (XBI) up 15% year-to-date, while the iShares Nasdaq Biotechnology ETF (IBB) has fallen 1.2%. Now, as we gear up for first-quarter earnings in the sector, SunTrust Robinson Humphrey sees a number of potentially better-than-expected results ahead. The team, led by analyst Yatin Suneja, writes that investors appear "poised to reward companies with good financial performance." He believes that positive pricing trends, along with tailwinds from foreign exchange and moderate expectations on the Street can drive outperformance, even if seasonality is a headwind. Suneja thinks that among big biotechs, Alexion Pharmaceuticals (ALXN), BioMarin Pharmaceuticals (BMRN), Celgene (CELG), Exelixis (EXEL), Regeneron Pharmaceuticals (REGN), and Sarepta Therapeutics (SRPT) have the best chance of reporting better-than-expected sales in the quarter, while he sees a more in-line quarters for Biogen (BIIB) and Incyte (INCY).
On April 11, 2018, Alexion Pharmaceuticals (ALXN) announced that it has made a public cash offer to Wilson Therapeutics’ shareholders to acquire all of the company’s outstanding shares. Wilson Therapeutics is a Sweden-based biopharmaceuticals firm. The acquisition will advance Alexion’s long-term growth strategy, which consists of advancing and rebuilding its rare disease pipeline. Alexion aims to accelerate the diversification of its product portfolio.
On April 9, 2018, Novartis AG (NVS) announced that it had entered into an agreement to acquire AveXis (AVXS), a clinical-stage gene therapy company, for ~$8.7 billion.
Biotechnology stocks and biotech ETFs tumbled in the back half of March and to start April. For example, the SPDR S&P Biotech ETF (NYSEArca: XBI) came into Monday with a loss of almost 12.6% over the past ...
Biotechnology stocks and the exchange-traded funds that hold them have tried to rally in recent months, only to disappoint investors over and over again. "While nearly every index, ETF and stock finished noticeably below their respective highs, some still notched impressive net moves on Monday," wrote Instinet technical analyst Frank Cappelleri. "The [iShares Nasdaq Biotechnology ETF] was the leader among the industry ETFs we track, missing a 2% gain." Gene therapy company AveXis (AVXS) helped lead the way Monday, popping more than 80% to above $200 on news that drug juggernaut Novartis (NVS) planned to acquire it for $8.7 billion in cash or $218 per share.
Biotechnology stocks and related exchange traded funds have been drubbed recently. Coming into Monday, the SPDR S&P Biotech ETF (NYSE: XBI ), one of the largest such ETFs, was sporting one-week and one-month ...
It's a new quarter, but the same old trends are at play in terms of biotech fund flows, writes Raymond James's Laura Chico. For the week ending April 4, biotech funds saw $240 million in outflows, a 0.4% ...
Biotechnology stocks and biotech ETFs were among the worst performing areas of the markets Monday as Alkermes (NasdaqGS: ALKS) shares plunged after the U.S. food and Drug Administration refused to review ...
Mergers have never been easy but these days companies have a new set of worries to add to the list. National security has become a potential hurdle after the potential merger of Broadcom (AVGO) and Qualcomm ...
The broader market scuffled in February, but the health care sector was worse. For example, the Health Care Select Sector SPDR (NYSE: XLV ) lost 4.5 percent, which was about 80 basis points worse than ...
The pharmaceutical industry is lobbying to reverse part of the recent Congressional spending bill that shifted a $10-billion consumer aid burden from the federal government to manufacturers. The Bipartisan ...
Key market index funds extended their gains Monday as Apple and Boeing led the Dow Jones industrial average.
With biotech stocks tumbling toward long-term levels of support, we take a closer look at how active traders will trade the bounce.