Proving that earnings have recently meant nothing to biotech investors, shares of Amgen (NasdaqGS: AMGN) are down 4.6% over the past week, a time frame that includes the company saying first-quarter EPS surged 50%. Amgen also boosted its 2015 guidance.
Shares of Biogen (NasdaqGS: BIIB) have plunged 10% over the past week with losses accelerating after the company said first-quarter profits jumped 71%. IBB has a combined weight of 15.7% to Amgen and Biogen.
“To be clear, the move lower in the Biotech space at this point is more than manageable in the context of the long-term uptrend. Yes, it will cause short -term PnL duress but just be mindful to not get too carried away with Biotech bearishness even on correction if that were to truly materialize,” adds Azous. [Must See Biotech ETF Chart]
iShares Nasdaq Biotechnology ETF
