uploads///Graph Part

IBB ETF Pounded by Biotech and Pharma Subgroups in Early August

By

Aug. 26 2015, Updated 2:51 p.m. ET

IBB dragged down by biotechnology and pharmaceutical subgroups

The biotechnology and pharmaceutical subgroups comprise 97.43% of the iShares NASDAQ Biotechnology ETF (IBB) portfolio. Biotech followed the market trend in the week ending August 7, 2015, and was oversold. Globally, markets fell on concerns about weak economic data from China, giving up all the gains made during the week ending July 31, 2015.

 

The above graph reflects the performance of IBB’s subgroups against IBB and the SPDR S&P 500 ETF Trust (SPY).

Article continues below advertisement

Within IBB, the holding companies sector fell by 10.23%, but it comprises only 0.69% of IBB’s portfolio. The biotechnology sector, making up 73.61% of the ETF, fell by 5.56%. Pharmaceuticals, comprising 23.82% of IBB, fell 5.99% in the week ending August 7, 2015. Biotechnology and pharmaceuticals underperformed both IBB and the broader market index (SPY) in that same period.

REGN rises, while ACAD and ALNY fall

Regeneron Pharmaceuticals (REGN), making up 7.26% of the IBB biotechnology subgroup, rose 4.58% during the week ended August 7, 2015. With its 2Q15 results, REGN reported a 50% revenue increase to $999 million versus $666 million in 2Q14. GAAP (generally accepted accounting principles)-based net income stood at $195 million—a sharp increase over $96 million in 2Q14.

The biotechnology subgroup was dragged down by Alnylam Pharmaceuticals (ALNY). ALNY makes up 1.6% of the subgroup and fell 16.67% during the week ended August 7. ALNY announced a net loss of $71.8 million for 2Q15 and disappointed Wall Street with a wider net loss gap year-over-year. ALNY’s 2Q14 loss stood at $44.1 million.

Meanwhile, Acadia Pharmaceuticals (ACAD), comprising 0.6% of the pharmaceutical subgroup, fell 19.81% after announcing its 2Q15 results. According to the company’s press release, ACAD reported a net loss of $39.4 million, worse than the $21.5 million net loss it posted for 2Q14.

Advertisement

More From Market Realist

  • Michelob Ultra beer
    Company & Industry Overviews
    AB InBev Is the Top Beer Brand Worldwide—Is It a Monopoly?
  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • Aol logo on office building,
    Company & Industry Overviews
    What We Know About Apollo Global Management, New Owners of AOL and Yahoo
  • Chick-fil-A sign
    Company & Industry Overviews
    Why It Only Costs $10K to Own a Chick-fil-A Location
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.