Pharma, Healthcare ETFs in Focus on M&A Talk, Earnings | ETF Trends

Exchange traded funds (ETFs) tracking pharmaceutical and healthcare stocks could see action Monday on news Johnson & Johnson (NYSE: JNJ) is on the prowl for acquisitions and earnings from Eli Lilly (NYSE: LLY).

Swiss device maker Synthes confirmed it is in merger negotiations with J&J, according to reports. Shares of U.K. medical technology company Smith & Nephew traded lower as takeover hopes suffered a blow after the bid for Synthes, MarketWatch reported.

Separately, Eli Lilly said its first-quarter profit fell from the year-earlier period.

The largest healthcare ETFs by assets include Health Care SPDR (NYSEArca: XLV), Vanguard Health Care ETF (NYSEArca: VHT) and iShares Dow Jones U.S. Healthcare (NYSEArca: IYH).

In pharma ETFs, the most popular offerings include Pharmaceuticals HOLDRS (AMEX: PPH), SPDR S&P Pharmaceuticals ETF (NYSEArca: XPH) and iShares Dow Jones U.S. Pharmaceuticals (NYSEArca: IHE).

Health Care SPDR

The opinions and forecasts expressed herein are solely those of John Spence, 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.