Teva, Cephalon Boost Biotech ETFs | ETF Trends

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

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.