Yahoo Finance XBI and IHI Rose despite the Biotechnology Sector’s Sluggish Week
XBI and IHI Rose despite the Biotechnology Sector's Sluggish Week
Reviewing biotechnology ETFs for the week
The Market remained flat for the week ending May 13, 2016, with the SPDR S&P 500 ETF (SPY) falling marginally by 0.5%. Biotechnology, or biotech, ETFs had a mixed week. The iShares NASDAQ Biotechnology ETF (IBB) and the Health Care Select Sector SPDR Fund (XLV) fell by 0.5% and 0.1%, respectively, while the SPDR S&P Biotech ETF (XBI) and the iShares U.S. Medical Devices ETF (IHI) rose 0.2% and 0.3%, respectively, for the same period.
The above table shows the closing prices, weekly returns, and moving averages of biotech ETFs and the SPDR S&P 500 ETF.
Fund activities
From May 9 to May 13, biotech ETFs saw positive fund flows, which means subscriptions were higher than redemptions. The iShares NASDAQ Biotechnology ETF witnessed the highest net fund inflows of ~$167.8 million, followed by the iShares U.S. Medical Devices ETF with inflows of ~$32.4 million, the SPDR S&P Biotech ETF with inflows of ~$29.9 million, and XLV with net fund inflows of ~$4.9 million.
Top individual biotech gainers
The top gainers for the week ending May 13 were ChemoCentryx (CCXI), Akorn (AKRX), and Exelixis (EXEL), which rose by 88.2%, 20.5%, and 17.1%, respectively. ChemoCentryx’s gain was driven by the news that it had obtained the licensing rights to commercialize CCX168 from Vifor Pharma in Europe, Canada, Mexico, Central and South America, and South Korea.
Akorn rose on the news that it officially filed 2014 and 2015 financials with the SEC (Securities and Exchange Commission). It wasn’t able to file sooner because of its internal review of accounting practices. Exelixis’s move was driven by management updates on Cabometyx for treating renal cell carcinoma in the Bank of America Merrill Lynch 2016 Health Care Conference held on May 10. ChemoCentryx, Akorn, and Exelixis have weights of 0.03%, 0.6%, and 0.2%, respectively, in the iShares NASDAQ Biotechnology ETF.
In the next part of this series, we’ll look at large-cap biotech stocks.
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