Pfizer Acquires Anacor, Reviving M&A Bets in Biotech Sector, ETFs

The buyout also bolstered biotechnology sector-related ETFs with a small-cap tilt. For instance, the ALPS Medical Breakthroughs ETF (NYSEArca: SBIO) focuses on small- and mid-cap companies that have one or more drugs in either Phase II or Phase III U.S. FDA clinical trials. The broader SPDR S&P Biotech ETF (NYSEArca: XBI) follows an equal-weight index of biotechnology companies, with 23.9% in micro-caps, 35.7% small-caps and 22.2% mid-caps. ANAC makes up 3.4% of SBIO and 2.0% of XBI.

On Monday, SBIO increased 4.7% and XBI rose 4.1%.

Related: Hit The Lab With These 17 Biotech ETFs

Additionally, the cap-weighted iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB) gained 3.0% Monday while the broader Health Care Select Sector SPDR (NYSEArca: XLV) returned 1.5%.

For more news and strategy on the Biotech ETF market, visit our Biotech category.

ALPS Medical Breakthroughs ETF (NYSEArca: SBIO)