Biotechnology ETFs Raise Hopes On Stock Jump
February 8th, 2008 at 10:00am 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
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.