Top ten biotech stocks followed IBB’s trend
The top ten stocks in the iShares Nasdaq Biotechnology ETF’s (IBB) biotechnology subgroup gave an average return of -3.1%. This is similar to IBB. IBB gave a return of -3.2% as of October 13, 2015. However, the top ten biotechnology stocks underperformed the SPDR S&P 500 ETF (SPY). SPY gave a return of -0.63%. All of the top ten stocks in the biotechnology subgroup fell. The combined weight of the top ten stocks in the biotechnology subgroup account for 59.9% of IBB’s portfolio.
The above graph shows the performance of the biotechnology subgroup’s top ten stocks compared to SPY and IBB. SPY clearly outperformed both.
Incyte fell 4.5%
Incyte Pharmaceuticals (INCY) followed the trend. It fell by 4.5%. The stock fell due to profit-booking. The trading volumes were also relatively higher at ~2.2 million shares per day—compared to the previous day’s trading volume of ~1.1 million shares per day. Incyte closed at $101.21. It was trading below the 20-day, 50-day, and 100-day moving averages.
On the positive side, according to the press release, Incyte and Merck (MRK) “announced the expansion of the companies’ ongoing clinical collaboration to include a Phase 3 study evaluating the combination of epacadostat, Incyte’s investigational selective IDO1 inhibitor, with Keytruda® (pembrolizumab), Merck’s anti-PD-1 therapy, as first-line treatment for patients with advanced or metastatic melanoma. The Phase 3 study, which is expected to begin in the first half of 2016, will be co-funded by Incyte and Merck.” Incyte has a weight of 3.7% in IBB’s portfolio.