The large-cap stocks of biotechnology (or biotech) ETFs remained negative, with the exception of the large-caps from the iShares US Medical Devices ETF (IHI), which rose by 1.5%. IHI outperformed the SPDR S&P 500 ETF (SPY), which fell by 1.3%.
The large-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB) were the worst affected, with a total return of -6.4%. This was followed by the large-caps stocks of the SPDR S&P Biotech ETF (XBI), which returned -5.7%. The large-cap stocks of the Health Care Select Sector SPDR ETF (XLV) returned -2.4% for the week ended April 29, 2016.
The above graph reflects the performances of different biotech ETFs for the week ended April 29, 2016.
Boston Scientific rose on 1Q16 results
Among the large-cap biotech stocks, the biggest news for the week ended April 29, 2016, came from Abbott Laboratories (ABT). ABT announced its acquisition of St. Jude Medical (STJ) for $25 billion. However, Boston Scientific (BSX) also rose 10.3% in the week on good 1Q16 results.
As per its press release on April 27, 2016, Boston Scientific’s sales stood at $2.0 billion in 1Q16. The company had issued guidance for the quarter in the range of $1.89 billion–$1.94 billion. BSX’s revenue represented a rise of 11% on a year-over-year reported basis. BSX’s adjusted earnings per share (or EPS) stood at $0.28 in 1Q16 compared to $0.21 in 1Q15.
Boston Scientific closed at $21.92 and was trading above its 20-day moving average on April 29. Year-to-date, the stock has risen by 18.9%. At its current price, the stock is trading at a 2016 forward price-to-earnings (or PE) multiple of ~20.2x.
The book value of Boston Scientific is at $4.77 per share. At its current price, the stock is trading at a price-to-book value of ~4.6x. Boston Scientific has a weight of 0.9% in XLV and 4.6% in IHI.