Biotechnology exchange traded funds were mixed Monday after sector bellwether Gilead Sciences (NasdaqGS: GILD) disclosed it has received a subpoena from the U.S. Department of Justice.
Gilead shares were down nearly 1% but pared their earlier loss after the company late Friday said it has received a request for information from the U.S. Attorney’s Office for the Northern District of California related to several of its drugs. The company said it is cooperating in the civil and criminal investigation.
“All the company knows is what is in the subpoena, the DOJ has just asked for the documents. It is not known if this is a result of an internal informant or not (or what impact this might have on outcome),” Deutsche Bank analysts said in a comment note Monday. “The nature of the investigation usually becomes clear as it proceeds.”
Gilead is a holding in sector ETFs such as Biotech HOLDRS (AMEX: BBH), PowerShares Dynamic Biotechnology & Genome (NYSEArca: PBE) and iShares Nasdaq Biotechnology (NasdaqGM: IBB). The funds were mixed on Monday afternoon.
iShares Nasdaq Biotechnology
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