Healthcare exchange traded funds (ETFs) will face an uphill climb Tuesday following quarterly results from top holding Pfizer (NYSE: PFE), which saw its shares fall over 1% in premarket trading.
Pfizer’s adjusted net income topped expectations and the drug maker reiterated its 2011 outlook. Chief Executive Ian Read said the firm expects to complete an evaluation of its business portfolio during the second half of the year.
“I am pleased not only with our solid financial performance during the first quarter despite the loss of exclusivity of several products in the U.S. and other geographies, but also with our ability to enhance shareholder value through various initiatives, including our increased share repurchase activity so far this year,” the CEO said in the earnings release.
Pfizer shares stumbled mid-April on concerns over four deaths in a study for its arthritis drug tofacitinib. The stock has bounced back and on Monday touched a new 52-week high.
Pfizer represents 12% of Health Care Select Sector SPDR Fund (NYSEArca: XLV). The stock is also the second-largest holding in iShares Dow Jones U.S. Pharmaceuticals Index Fund (NYSEArca: IHE) at 9% of the portfolio. The pharma ETF rallied over 8% in April.
iShares Dow Jones U.S. Pharmaceuticals
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