|Bid||0.00 x 2200|
|Ask||0.00 x 900|
|Day's Range||96.97 - 99.08|
|52 Week Range||74.25 - 99.08|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
Biotechnology sector-related exchange traded funds were among the few areas of the markets that shook off the tariffs-talk volatility and was still in the green Tuesday as Sarepta Therapeutics (SRPT) surged on positive preliminary results from its experimental treatment. The BioShares Biotechnology Products Fund (BBP) , which follows U.S.-listed biotech companies with a primary product offering or product candidate that has landed FDA approval, and SPDR S&P Biotech ETF (XBI) , which takes an equal-weight approach to the biotech space, were among the better performing ETFs Tuesday, rising 2.2% and 1.3%, respectively. Meanwhile, the iShares Nasdaq Biotechnology ETF (NASDAQGM: IBB) , the largest biotech exchange traded fund by assets, was 1.3% higher Tuesday.
Biotech funds tacked on $76 million this week, adding to more than $500 million in net inflows over the past two weeks — a phenomenon the group hasn't seen in nine months.
Biotech stocks are nearing a big break out as measured by the SPDR S&P Biotech ETF ( XBI). The group is already having a strong start to 2018, quietly outpacing not only the S&P 500 but the most talked about sectors in the market, technology ( XLK) and consumer stocks ( XLY). The biotech ETF is sitting right below a significant resistance level at $97.90, the previous all-time high for the ETF, and should that price rise above technical resistance, it would mark a big breakout.
Biotech stocks—with their binary outcomes and potential FDA approvals or denials—should whip around, pending various outcomes. It doesn’t help that President Trump (seemingly at random) decides periodically that we all pay too much for drugs. For biotech stocks to work on the long side investors’ risk appetite would have to take off or a major approval could drive the stocks up.
CNBC's Jim Cramer says that he is disappointed by the recent performance of pharmaceutical stocks, saying there should be far more deals in the health-care space. Cramer says despite pharma's underperformance, he likes biotech stocks, which have been making a bit of a comeback this year. CNBC's Jim Cramer said Monday that he is disappointed by the recent performance of pharmaceutical stocks, saying there should be far more deals in the health-care space.
President Donald Trump is keeping pharmaceutical execs, lobbyists and investors on their toes. “[The notice] is consistent with his administration's ‘bully pulpit’ strategy of cajoling the drug makers into industry-led changes to drug pricing,” Height analyst Andrea Harris said in a note.
Big Data could improve results in the biopharmaceutical industry—if companies can improve their use and avoid pitfalls, writes Jefferies' Michael Yee in a report issued today. The proper implementation of new data and analytics tools could "accelerate the probability of success" in the drug industry and boost process efficiencies, driving billions in cost savings, according to Yee. In this way, using Big Data to "find better drugs at a lower cost" will put drug makers at an advantage by increasing return on investment. Companies that are using Big Data include Amgen (AMGN), Biogen (BIIB), Celgene (CELG), Gilead Sciences (GILD), Johnson & Johnson (JNJ), Eli Lilly (LLY), Merck (MRK), Novartis (NVS), and Regeneron Pharmaceuticals (REGN).
Under the new law, terminally ill patients who are ineligible for clinical trials and have exhausted all treatment options will now be allowed to test experimental therapies not yet approved by the FDA. In providing a workaround for the FDA’s long and arduous trial processes, the law accelerates the time it takes for patients to access a new formula and may make it easier for clinical-stage pharmaceuticals developing orphan drugs to test their products.
The summer of 2015 marked the end of the glory years in the biotechnology sector. The biotech valuation correction that lasted over two years may be coming to an end. Some well-known, large-cap names — such as AbbVie Inc (NYSE:ABBV) and Pfizer Inc. (NYSE:PFE) — are currently trading at forward P/E multiples in the 10+ range.
Incyte Corporation (INCY) is a biopharmaceutical company with headquarters in Wilmington, Delaware. Incyte’s business includes the discovery, development, and commercialization of various products to cater to unmet medical needs in oncology and the treatment of other diseases.
Biotech stocks turned higher on May 11 after President Trump outlined a series of steps the administration might take to control skyrocketing drug prices. The lack of details triggered a relief rally underpinned by skepticism that the initiatives will pass Congress and their deep reliance on industry contributions.
In the first quarter, Ionis Pharmaceuticals’ (IONS) revenue grew 24.7% YoY (year-over-year) to $144.4 million from $145.3 million. Analysts expect its revenue to grow 30.2% YoY to $135.7 million in the second quarter. The graph below compares Ionis’s revenue since Q1 2017.
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.