As drug providers shift away from blockbuster drugs, the biotechnology sector, along with related exchange traded funds, will be supported by the next wave of specialized or targeted drugs.
For instance, Amgen (NasdaqGS: AMGN) this week announced a deal to acquire genetic sequencing firm Decode for $415 million to work on gene variants and common diseases, reports Ben Hirschler for Reuters.
Decode’s expertise will help Amgen’s experimental medicines to target the right areas in the human body. [Biotech ETFs Outperform]
“This fits perfectly with our objective to pursue rapid development of relevant molecules that reach the right disease targets, while avoiding investments in programs based on less well-validated targets,” Amgen Chief Executive Robert Bradway said in the article.
The biotechnology industry has been moving toward developing personalized medicines that are better suited for a particular genetic profile.