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Biotech Stocks Rise Due to a Stable Market: July 31 Week

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Biotech stocks rise due to a stable market

The iShares Nasdaq Biotechnology ETF (IBB) rose 3.13% for the week ending July 31, 2015. IBB outperformed the broader market SPDR S&P 500 ETF (SPY). SPY rose by 1.17% for the same period. In a volatile stock market, IBB has been fluctuating more compared to SPY. Out of 145 holdings within IBB, 102 stocks ended up in green for the week ending July 31, 2015.

The above chart indicates the performance of IBB versus SPY on a week-over-week basis from July 6–31, 2015.

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Amgen, Gilead, and Vertex lead the way

Amgen (AMGN), Gilead Sciences (GIL), and Vertex Pharmaceuticals (VRTX) rose 10.92% for the week ending July 31, 2015. Vertex announced its 2Q15 result on July 29, 2015. According to the company’s press release, it declared revenue of $166.1 million on a GAAP (generally accepted accounting principles) basis.

Although, it announced a net loss of $188.8 million, the positive guidance on Kalydeco sales for full-year 2015 of $575–$590 million helped the stock rise. Gilead Sciences’ stock rose by 8.13% on better 2Q15 earnings. According to the company’s press release, its total revenue was $8.2 billion—compared to $6.5 billion in 2Q14. Amgen rose 6.92% for the week ending July 31, 2015. It reported better-than-expected earnings. According to the company’s press release, its 2Q15 revenue was $5.37 billion. It raised the full-year guidance to $21.1–$21.4 billion.

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