IBB ADRs outperform
The iShares NASDAQ Biotechnology ETF (IBB) has 14 American Depository Receipts (ADR) in its portfolio. These ADRs have a weight of 9.36% and provide good geographical spread across nine countries. These ADRs gave an average return of 0.85% for August 10–17, 2015. The average return from the ADRs outperformed the benchmark index, which gave a return of 0.05% for the same period.
Small-cap ADRs helped the overall performance of the ADRs. Stocks like Sinovac Biotech (SVA) gave a return of 13.64% as it announced its 2Q15 unaudited results. Sinovac Biotech noted that its revenues were $18.5 million, compared to $12.1 million recorded in 2Q14. Net income was $2.3 million, compared to a net loss of $2.5 million in 2Q14.
GW Pharmaceutical (GWPH) rose by 6.6% as Morgan Stanley announced overweight status on this stock and initiated the coverage for this stock.
Valuations of ADRs
The average price-to-book value (or PBV) ratio of these ADR stood at 5.87x. Three stocks are trading above these levels, and seven stocks are trading below these levels. Flamel Technologies (FLML) has the highest PBV of 22.13x and Theravance Biopharma (TBPH) has the lowest PBV at 1.41x.
The average trailing 12-month price-to-earnings (or PE) ratio for ADRs is 21.84x. Three stocks are trading above the average. FLML has the highest PE ratio of 28.60x, and Grifols SA (GRFS) was the lowest with 15.59x.