XBI’s large-cap stocks turn positive in December
The SPDR S&P Biotech ETF’s (XBI) large-cap stocks gained 1.1% and outperformed the XBI and the SPDR S&P 500 ETF (SPY), which gave returns of 1.1% and 0.25%, respectively. Of 12 large-cap stocks that XBI holds in its portfolio, ten stocks gave positive returns and two stocks gave negative returns. Large-cap stocks account for ~13% of XBI’s portfolio. The XBI large-cap stocks include Incyte (INCY), BioMarin Pharmaceutical (BMRN), and Alkermes (ALKS), which gave returns of 1.9%, 2.7%, and -0.85%, respectively.
The above graph reflects XBI’s large-cap stocks’ performance compared with that of XBI and SPY. Since the beginning of December 2015, XBI’s large-cap stocks have managed to give a return of 0.35%. XBI has returned -5.7% and SPY has returned -1.3%.
Alexion rises after FDA approves Kanuma
Alexion Pharmaceuticals (ALXN) gained 2.5% on December 10, 2015. The stock went up after the FDA (Food and Drug Administration) approved its drug, Kanuma. According to the press release, Alexion announced that the FDA had “approved Kanuma (sebelipase alfa) for the treatment of patients of all ages with a diagnosis of lysosomal acid lipase deficiency (LAL-D). Kanuma, an innovative enzyme replacement therapy (ERT), is the first therapy approved in the U.S. for the treatment of patients with LAL-D, a genetic and progressive ultra-rare metabolic disease in which patients suffer multi-organ damage and premature death.”
ALXN closed at $187.63 and was trading above its 20-, 50-, and 100-day moving averages. Year-to-date, ALXN has returned 1.4%. ALXN has a TTM (trailing-12-month) PE (price-to-earnings) ratio of 152.6x. ALXN has a book value of $36.52. With its current price, the stock is trading at a PBV (price-to-book value) ratio of 5.1x. ALXN has a weight of 1.1% in XBI’s portfolio.