A large acquisition and favorable results from a drug trial helped biotechnology and pharmaceutical sector-related exchange traded funds rally on Monday.
Among the best performing ETFs of Monday, the PowerShares Dynamic Biotech & Genome (NYSEArca:PBE) jumped 3.0%, ALPS Medical Breakthroughs ETF (NYSEArca: SBIO) advanced 3.1%, iShares Nasdaq Biotechnology ETF (NasdaqGM: IBB) rose 2.7% and SPDR Pharmaceuticals ETF (NYSEArca: XPH) increased 2.5%. All four ETFs were testing their resistance at the 200-day simple moving average.
The biotech sector climbed after Horizon Pharma PLC (NasdaqGS: HZNP) announced a deal to acquire Raptor Pharmaceutical Corp (NasdaqGS: RPTP) for about $800 million, reports Ryan Vlastelica for MarketWatch.
RPTP shares surged 20.3% on the announcement while HZNP shares increased 9.4%.[related_stories]
Horizon’s chief executive, Tim Walbert, has been vocal about expanding Hirozon through acquisitions, notably through treatment of rare diseases, at a time when valuations have significantly fallen off from 2015 highs, Reuters reports.
Merger and acquisition activity has helped the biotech sector push higher this year.