Gilead is 7.7% of IBB’s weight, making it the second-largest of the ETF’s 162 holdings. Celegene (NASDAQ: CELG) is the ETF’s largest holding.
Political risks linger for biotechnology stocks and the broader healthcare space. President Trump recently said that pharmaceuticals prices in the U.S. are “outrageous.” Earlier this year, Trump said the pharmaceuticals companies “are getting away with murder” when it comes to pricing on their products.
“Although the company is now viewed as a show-me story for investors, we think Alexion (ALXN) shares are pretty close to reflecting a worst-case scenario for the company long-term,” said Credit Suisse in the note posted on Barron’s. “Our Grey Sky scenario of $101 a share assumes 2025 revenue of $3.5 billion versus 2017 revenue of $3.6 billion (about 0% growth).”
Alexion is IBB’s ninth-largest holding at a weight of almost 3.7%.
For more information on the biotech sector, visit our biotechnology category.