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AbbVie, Lead Performer of the Pharmaceutical Subgroup

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IBB’s pharmaceutical subgroup outperforms

For the week ending October 30, 2015, the pharmaceutical subgroup outperformed other subgroups. For the week ended October 30, 2015, the iShares NASDAQ Biotechnology ETF’s (IBB) pharmaceutical subgroup rose by 4.2%, the Health Care Select Sector SPDR ETF’s (XLV) rose 4.0%, the SPDR S&P Biotech ETF’s (XBI) rose 3.3%, the iShares US Medical Devices ETF’s (IHI) rose 1.9%, and the iShares US Healthcare Providers ETF’s (IHF) rose 3.2%.

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The above graph reflects the performance of the pharmaceutical subgroups of different biotechnology ETFs compared with the SPDR S&P 500 ETF (SPY) for the week ended October 30, 2015. XLV provides the highest exposure to its pharmaceutical subgroup, which holds a weight of 50.2% of the XLV’s portfolio. In terms of numbers, IBB has the most holdings, with 61 in the pharmaceutical subgroup.

AbbVie led pharmaceutical stocks with an 18.3% rise

AbbVie (ABBV) rose 18.3% for the week ended October 30, 2015, and closed at $59.55. The stock went up on good 3Q15 earnings. AbbVie reported third quarter revenues of $5.9 billion, a rise of 18.4% on year-over-year basis. Revenues from its drug Humira stood at $3.6 billion, a growth of 12.1% including foreign exchange rate fluctuations. Imbruvica and Viekira also contributed to the company’s sales growth with revenues of $304 million and $469 million, respectively. On a GAAP (generally accepted accounting principles) basis, AbbVie reported diluted earnings per share of $0.74.

AbbVie raised its full year 2015 outlook with a diluted earnings per share guidance in the range of $3.16 to $3.80 on a GAAP basis. AbbVie has a weight of 3.6% in XLV’s portfolio.

Other stocks that performed well in the pharmaceutical subgroup are Agios Pharmaceuticals (AGIO), Alkermes (ALKS), and Allergan (AGN), which returned 18.1%, 17%, and 14.9%, respectively.

 

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