The overall pharmaceutical industry has also taken a greater interest in so-called orphan drugs due to their strong protection, which helps support reliable pricing power, especially as the industry faces questions over high pricing over primary care products.

Among the biotech- and pharma-related ETFs, HZNP makes up a hefty 4.5% of XPH’s underlying portfolio and 2.9% of SBIO. Additionally, PBE includes a large 2.9% position in RPTP.

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Additionally, the biotech sector found further support from Foamix Pharmaceuticals Ltd (NasdaqGS: FOMX) after the company revealed that a drug designed to treat papulopustular rosacea – a form of redness and bumps of the face – showed strong results in a Phase 2 clinical trial.

“We believe the positive data from our clinical trial could support advancement into Phase 3, and look forward to reviewing these results with the FDA,” Dov Tamarkin, the company’s chief executive, said in a statement.

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

iShares Nasdaq Biotechnology ETF