The biotechnology sector suffered after a Genetech Inc. (DNA) study regarding treatment of Lupus failed, letting down related exchange traded funds (ETFs).
The study of Rituxan was in the later stages, reports Wanfeng Zhou for Thomson Financial.
Genentech lost 5.8% yesterday, while Biogen Idec Inc. (BIIB) lost 4.6%.
Both companies are major components of biotechnology-related ETFs:
- Biotech HOLDRs (BBH): The fund dropped 3.1% to its lowest level since Feb. 22. Genentech is 39.7% of the fund, while Biogen is 9.4%. Year-to-date, the fund is up 0.7%.
- iShares Nasdaq Biotechnology (IBB): Lost 1.1% in trading yesterday. Biogen is 4.3% of the fund. Year to-date, the fund is down 4.1%.
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