Incyte: Biggest Loser in the Top 10 Biotechnology Subgroup Stocks



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.

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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.

In contrast, Gilead Sciences (GILD) and Illumina (ILMN) didn’t give up much. They fell by 1.3% and 0.80%, respectively.


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