Biotechnology exchange traded funds (ETFs) rallied to open the week after Teva Pharmaceutical (NasdaqGS: TEVA) said it’s buying Cephalon (NasdaqGS: CEPH) for $6.8 billion in a blockbuster sector deal.
The combined company would represent about $7 billion in annual sales. Shares of Teva and Cephalon were both up more than 3% in recent trading.
“This is transforming for Teva’s branded business, as it will help us to deliver on our strategic goal of creating a diversified, multi-faceted company,” said Teva Chief Executive Shlomo Yanai in a press release. “Our significantly broader portfolio will permit marketing and sales synergies and enhance profitability.”
ETFs that track biotech stocks include iShares Nasdaq Biotech (NYSEArca: IBB), SPDR S&P Biotech (NYSEArca: XBI) and First Trust NYSEArca Biotech (NYSEArca: FBT). All three funds were up more than 1% in midday trading Monday.
First Trust NYSEArca Biotech