|Bid||99.59 x 1100|
|Ask||99.59 x 1000|
|Day's Range||98.53 - 99.80|
|52 Week Range||74.25 - 101.55|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
First-quarter earnings season may have suffered from low expectations, but the second quarter is traditionally a stronger one for the biotech industry, and there's more optimism heading into individual company reports. Leerink's Geoffrey Porges disagrees with the bulls this time around, however.
MARKET PULSE Exchange-traded funds that track the biotechnology sector jumped on Friday, supported by a huge gain in industry bellwether Biogen, which climbed after a positive drug trial. The iShares Nasdaq Biotechnology ETF (IBB) jumped 2.
This article is a part of InvestorPlace’s Best ETFs for 2018 contest. The readers’ choice for the contest is the PowerShares QQQ Trust ETF (NASDAQ:QQQ). Tech stocks have been on a heck of a ride this year.
With second-quarter earnings coming up, Bernstein's Aaron (Ronny) Gal takes a look at what to expect from some biotech firms. The iShares Nasdaq Biotechnology ETF (IBB) is down 0.2% to $110.49, and the SPDR S&P Biotech ETF (XBI) is falling 0.3% to $95.98 tis morning. Sign up to Review & Preview, a new daily email from Barron’s. Every evening we’ll review the news that moved markets during the day and look ahead to what it means for your portfolio in the morning.
Investors have bought into the technology sector with fervor as markets enjoyed a brief period of tranquility just before politicians resumed their belligerent rhetoric.
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.