Biotechnology ETFs: Who Were the Top Performers Last Week?
IBB’s large-cap stocks had a good week
The large-cap stocks within the iShares NASDAQ Biotechnology ETF (IBB) outperformed the large-cap stocks of other biotechnology ETFs during the week ending April 1, 2016, with a return of 4.1%. The large-cap stocks within the SPDR S&P Biotech ETF (XBI) rose 3.5%. The large-cap stocks of these two biotech ETFs outperformed the SPDR S&P 500 ETF (SPY), which rose 1.9% for the week ending April 1.
The above graph shows the performances of large-cap stocks of various biotechnology ETFs in comparison with the performance of the SPDR S&P 500 ETF.
Regeneron gains on positive trials
Regeneron Pharmaceuticals (REGN) rose 9.3% during the week ending April 1, 2016. In a press conference on April 1, Regeneron Pharmaceuticals, along with Sanofi (SNY), announced that “two placebo-controlled Phase 3 studies evaluating investigational dupilumab in adult patients
with inadequately controlled moderate-to-severe atopic dermatitis (AD) met their primary endpoints. In the studies, known as LIBERTY AD SOLO 1 and SOLO 2, treatment with dupilumab as monotherapy significantly improved measures of overall disease severity, skin clearing, itching, quality of life, and mental health.
REGN closed the week at $405.25 and was trading above its 20-day moving average. On a year-to-date basis, REGN has fallen 25.4%. Analysts’ median target price for the stock is $480.50. The RSI (relative strength index) of the stock indicates the stock is neither overbought nor oversold.
Regeneron Pharmaceuticals has a book value of $34.92 per share. At its current price, the stock is trading at a PBV (price-to-book value) ratio of 11.6x and a 2016 forward PE (price-to-earnings) ratio of ~35.1x. Its peers Amgen (AMGN) and Biogen (BIIB) are trading at 2016 forward PE ratios of 14.2x and 14.0x, respectively.
REGN makes up 7% of IBB’s portfolio.
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