Novavax (NasdaqGM: NVAX) has six drugs currently in trial, a $7 price target from Piper Jaffray and a consensus target of $10, according to 24/7 Wall Street. Split the difference and call that $8.50 and Novavax could offer about 60% upside from Thursday’s close of $5.18. Novavax accounts for almost 1.9% of XBI’s weight.
Arena, Galena and Novavax have a combined market value of just over $3.3 billion, but combine for about 5.5% of XBI’s weight. As Intercept proved Thursday, a stock does not need to hold a dominant position in XBI’s lineup to move the needle for the ETF. The stock merely needs to make a big move. [A Biotech ETF for Up-And-Coming Drug Developers]
SPDR S&P Biotech ETF
