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Radius Continued to Fall despite Positive Data on Osteoporosis

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Top ten small-cap stocks

The top ten small-cap stocks of the iShares Nasdaq Biotechnology ETF’s (IBB) pharmaceutical subgroup by market cap gave an average return of -5.5%. The stocks underperformed IBB and the SPDR S&P 500 ETF (SPY). They had returns of -3.2% and -0.63% as of October 13, 2015. The top ten small-cap stocks include stocks like Ironwood Pharmaceuticals (IRWD), Insys Therapeutics (INSY), and Sarepta Therapeutics (SRPT). They gave returns of -3.9%, -4.3%, and -5.4%, respectively. The combined weight of the top ten small-cap stocks was 3.0% of IBB’s portfolio.

The above graph shows the performance of the top ten small-cap stocks in IBB’s pharmaceutical subgroup as of October 13, 2015.

Radius continues to fall despite positive data on Osteoporosis

According to the press release by Radius Health (RDUS), it “announced positive top-line data from the first six months of the ACTIVExtend trial that showed women who were previously treated with 18 months of abaloparatide (ABL) subcutaneous (SC) injection experienced no new vertebral fractures and an increased bone mineral density (BMD) during the first six months of treatment on alendronate (ALN). These data were presented today at a plenary oral session during the American Society for Bone and Mineral Research (ASBMR) 2015 Annual Meeting.”

The stock has been on a downward trend due to profit-booking since October 5, 2015. It closed at $75.54. Radius closed at $49.80 on October 13, 2015. During this period, it fell ~34%. Radius is trading below the 20-day, 50-day, and 100-day moving averages. The 14-day RSI (Relative Strength Index ) was at 32. This indicates that it might become oversold if the trend continues. Radius has a weight of 0.55% in IBB’s portfolio.

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