IBB makes a comeback
The markets continued to stay positive and made small gains on March 21, 2016. The Dow Jones Industrial Average made small gains of 0.1%. The SPDR S&P 500 ETF (SPY) also reflected similar moves and gained 0.1%. However, it was a good day for biotech stocks. They witnessed some bounce back. The iShares Nasdaq Biotechnology ETF (IBB) rose by 2% and closed at $256.49. However, it was still trading below the 20-day, 50-day, and 100-days moving averages.
The above graph shows the price movements and returns of IBB, SPY, and IBB’s top performers as of March 21, 2016. On a year-to-date basis, IBB continues to underperform the broader market. The SPDR S&P 500 ETF had a return of -24.2%. Approximately 2.1 million shares were traded.
IBB’s top performers for March 21, 2016, were Cara Therapeutics (CARA), OvaScience (OVAS), Sarepta Therapeutics (SRPT), and Aratana Therapeutics (PETX). They rose by 21.3%, 21%, 20.6%, and 15%, respectively. However, the news makers are Sarepta Therapeutics and Aratana Therapeutics.
Aratana Therapeutics is a pet therapeutics company. It rose as it received its first FDA (U.S. Food and Drug Administration) approval. In a press release, it announced that “the Food and Drug Administration’s Center for Veterinary Medicine (or CVM) approved GALLIPRANT® (grapiprant tablets) for the control of pain and inflammation associated with osteoarthritis in dogs.” Galliprant is expected to be available to veterinarians in the fall of 2016. Aratana Therapeutics closed at $5.19. It has a book value of $2.9 per share. With its current price, the stock is trading at a price-to-book value of ~1.8x.
Sarepta Therapeutics rose on March 22. It received a support letter from doctors. It was signed by 36 renowned Duchenne Clinicians and researchers for Eteplirsen. The FDA is set to review Eteplirsen’s New Drug Application on April 25, 2016. Sarepta closed at $21.71 and traded above the 20-day moving average price of $15.20. The stock has a book value of $4.17 per share. With its current price, the stock is trading at a price-to-book value of 5.2x. It has a weight of 0.1% in IBB’s portfolio.