PJP trims some of the volatility associated with biotech and specialty pharmaceuticals stocks with allocations to blue-chip pharmaceuticals names. For example, Dow components Pfizer (NYSE: PFE), Johnson & Johnson (NYSE: JNJ) and Merck (NYSE: MRK) combine for nearly 15% of the ETF’s weight.
However, if there is one thing PJP has recently become known for, aside from its stellar returns, it is being front-and-center in the pharmaceuticals industry consolidation. That theme, which has become increasingly prominent this year, has shined added light on the the $2.15 billion PJP, an ETF that recently celebrated its tenth anniversary. [Pharma ETFs Like Mylan-for-Perrigo News]
As home to companies such as Allergan (NYSE: AGN), Perrigo (NasdaqGS: PRGO) and Mylan (NYSE: MYL), among others, PJP is awash in specialty pharmaceuticals buyers and sellers. For the moment, PJP’s 24-stock lineup is probably littered more with buyers than sellers, the result of the ETF’s weights to the largest biotech stocks and the aforementioned blue-chip pharma names. However, several of PJP’s other holdings have been bandied about as potential targets.
PowerShares Dynamic Pharmaceuticals Portfolio