Baxalta Rose on FDA’s Approval of Vonvendi



XLV’s large-cap stocks slump

The large-cap stocks of the Health Care Select Sector SPDR ETF (XLV) went down by 0.9% and outperformed the XLV itself, which gave a return of -1%. However, it underperformed the SPDR S&P 500 ETF (SPY), which gave returns of -0.8% on December 9, 2015.

Among the 49 large-cap stocks that XLV holds in its portfolio, 41 stocks ended in the red, and eight stocks gave positive returns. XLV’s large caps account for almost 98.3% of XLV’s portfolio. The large caps include stocks like Pfizer (PFE), Biogen (BIIB), and Medtronic (MDT), which gave returns of -0.75%, -1.4%, and -0.65%, respectively.

The above graph reflects the performance of XLV’s large caps in comparison with XLV and SPY. Since the start of December 2015, XLV has outperformed SPY and XLV large-cap stocks. SPY has returned -1.6%, XLV has returned -0.35%, and XLV’s large caps have returned -0.45%.

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FDA approves Vonvendi

Baxalta (BXLT) rose by 0.7% on December 9, 2015. The stock moved up as the FDA (US Food and Drug Administration) approved its Vonvendi. As per the press release, BXLT announced, “the U.S. Food and Drug Administration (FDA) has approved Vonvendi [von Willebrand factor (Recombinant)]. Vonvendi is the first and only recombinant treatment for adults living with von Willebrand Disease.”

BXLT closed at $37.21 and was trading 7.8% higher than the 100-day moving average price of $34.52 and was trading 7% higher than the 20-day moving average price of $34.77. BXLT has a book value of $5.87 per share. With its current value, the stock is trading at a price-to-book value of 6.34x. BXLT has a weight of ~0.7%.


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