XBI Holdings Finished Strong as Market Bounced Back on April 13



Reviewing XBI

On April 13, 2016, the Market continued its rally for the second straight day as the Dow Jones Industrial Average finished higher by 1.1%. The biotech stocks also ended higher. The SPDR S&P Biotech ETF (XBI) gained 2.4% for the day and outperformed the SPDR S&P 500 ETF (SPY), which gave a return of 1.1%.

The above chart indicates the closing price, moving averages, and returns at various intervals of XBI, the SPDR S&P 500 ETF, and XBI’s top performers. The SPDR S&P 500 Biotech ETF closed at $56.32 and was trading above the 20-day moving average. Year-to-date, the ETF is down by 19.8%.

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Which stocks performed well?

The top performers of the SPDR S&P Biotech ETF on April 13, 2016, were Eagle Pharmaceuticals (EGRX) Intrexon (XON), Medivation (MDVN), and Infinity Pharmaceuticals (INFI). These stocks rose by 8.5%, 8.1%, 8%, and 6.8%, respectively.

In a press release, Intrexon announced that it “has entered into Exclusive Channel Collaborations (or ECC) with two startups backed by the Harvest Intrexon Enterprise Fund, sponsored by Harvest Capital Strategies, LLC. Through the proprietary technologies of Intrexon, these companies will pursue new approaches for unmet needs in human health:

  • Relieve Genetics, Inc. will focus on a breakthrough, non-opioid gene therapy approach for neuropathic pain; and
  • Exotech Bio, Inc. will utilize a novel exosome-based platform for delivering therapeutic RNA to treat select cancer indications.”

Intrexon closed at $53.60 and was trading above its 20-day and 100-day moving averages. Year-to-date, the stock has moved up by 18.4%. Intrexon has a book value of $5.95 per share. At its current price, the stock is trading at a price-to-book value (or PBV) of ~6.0x. The stock has a weight of 2.2% in XBI’s portfolio.


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