Biotechnology ETFs Raise Hopes On Stock Jump

February 08, 2008 at 10:00 am by Tom Lydon

Biotechnology exchange traded funds (ETFs) and stocks are thriving as fourth quarter earnings from Biogen Idec Inc. (BIIB) gave investors an 84% jump in profit.

According to the Associated Press, Biogen’s profits rose on news of sales of its multiple sclerosis drug Avonex and Rituxan, which treats non-Hodgkins lymphoma and rheumatoid arthrities. Rituxan is co-promoted by Genentech (DNA).

Biotech ETFs that could get a lift on the good news:

iShares Nasdaq Biotechnology (IBB): Biogen holds 4%; down 4.1% year-to-date
Biotech HOLDRs (BBH): Biogen, 9.3%;Genentech, 36.6%; up 1% year-to-date
SPDR S&P Biotech (XBI): Biogen, 3.5%; Genentech, 3.5%; down 6% year-to-date
First Trust Amex BiotechnologyIndex ETF (FBT): Biogen, 3.8%; Genentech, 4.7%; down 6.6% year-to-date
PowerShares Dynamic Biotech & Genome (PBE): Biogen 3.9%; Genentech 4.4%; down 7.9% year-to-date