Biotechnology ETFs Rally on Sarepta FDA Drug Approval

BBC tracks potential up-and-coming biotechnology companies that are in the clinical trials stage. PTH, which utilizes Dorsey Wright and Associates momentum strategy, focuses on companies that are showing strong relative strength or forward momentum. XBI follows a more equal-weight index of biotechnology companies.

Sam Fazeli, an analyst with Bloomberg Intelligence, believes that Sarepta’s FDA approval may pave the way for easing requirements on medicines that treat patients with rare conditions who have no other options.

SEE MORE: M&A Activity, Passing Drug Trials Help Biotech ETFs Rebound

“I am amazed after all that has happened,” Fazeli told Bloomberg. “This does mean that the FDA may be more lenient on very rare diseases such as DMD with no drug options at all.”

For more information on the biotech sector, visit our biotechnology category.

PowerShares DWA Healthcare Momentum Portfolio