XBI Remains Flat as of August 17, 2015
XBI remains flat
As the curiosity continues about whether the Fed will increase the interest rates, China devalued its currency with the deteriorating economic conditions. Due to all of these factors, the global markets remained flat as of August 17, 2015. Biotech continued to follow the market trend. The SPDR S&P Biotech ETF (XBI) underperformed the broader market SPDR S&P 500 ETF (SPY). XBI returned -0.54% while SPY returned 0.61% for the same period.
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The above chart indicates the daily return of SPY and XBI from August 10–17, 2015.
Incyte and Alnylam rise while and Intrexon falls
Incyte (INCY) has a weight of 1.22% in XBI. It rose 10.26% from August 10–17, 2015. Its stock rose due to the high volume trading seen on August 17. The surge in trading volumes could be due to the better-than-expected 2Q15 results that the company announced on August 4, 2015. According to the company’s press release, it announced its 2Q15 revenue at $163 million—compared to $100 million in 2Q14. It reported $142 million from the sale of Jakafi. It raised the 2015 revenue from Jakafi to $560–$575 million.
Alnylam Pharmaceuticals (ALNY) rebounded with gains of 5.47% as of August 17, 2015. It had fallen 16.60% for the week ending August 7, 2015. According to the company’s presentation, Alnylam has filed for a CTA (Clinical Trial Agreement). It has initiated a Phase I/II study of ALN-AAT. It expects the clinical trial results in early 2016. Alnylam has a weight of 1.15% in XBI.
Intrexon (XON) fell by 14.40% when it announced its 2Q15 results. According to the company’s press release, its total revenue was $44.9 million. However, it also reported a net loss of $40.7 million. As per a press release, “During the second quarter, Intrexon’s exclusive collaboration and license agreement with the biopharmaceutical business of Merck KGaA, resulting in the receipt of $115 million, 50% of which is payable to ZIOPHARM Oncology, Inc., as an upfront fee in July 2015.”
Update: This post did not originally mention that 50% of the received $115 million described in the last paragraph is payable to ZIOPHARM. We have updated the post to include this point.