Yahoo Finance XBI’s and IHI’s Mid-Caps Soared, Overturning 2 Weeks of Losses
Takeovers, Earnings Drove Biotech Stocks in the Week Ended May 20
How have mid-cap biotechs performed over the week?
With a staggering return of 10.7%, the mid-capitalization (mid-cap) stocks of the SPDR S&P Biotech ETF (XBI) collectively outperformed the mid-cap stocks of other biotechnology (biotech) ETFs in the week ended May 20, 2016.
This performance was followed by the mid-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB), the Health Care Select Sector SPDR ETF (XLV), and the iShares U.S. Medical Devices ETF (IHI), which rose by 8.3%, 2.6%, and 1.1%, respectively.
The mid-cap stocks of the biotech ETFs listed above outperformed the SPDR S&P 500 ETF (SPY), which returned 0.4% in the same period.
The performances of IBB and XBI were mainly driven by the performance of Anacor Pharmaceuticals (ANAC). ANAC rose 55.7% on the news of Pfizer’s (PFE) buying it for $5.2 billion. To know more about the acquisition deal, you can read IBB Mid-Cap News: Pfizer Acquired Anacor for $5.2 Billion.
Acadia outperforms
Acadia Pharmaceuticals (ACAD) was one of the top mid-cap outperformers in the week ended May 20, 2016. Acadia Pharmaceuticals rose 21.1% as analysts discussed it as the next possible takeover bid.
Acadia’s Nuplazid, the first drug to be approved for the treatment of Parkinson’s disease psychosis (or PDP), makes the company an attractive takeover target for larger players. Also, the company’s recent form 13F filings suggest that hedge funds have been buying its stock.
Acadia Pharmaceuticals closed at $34.04 and was trading above its 20-day moving average price of $30.70. However, on a year-to-date (or YTD) basis, the stock fell by 4.5%.
Acadia Pharmaceuticals’ 52-week low is $16.64, and its 52-week high is $51.99. It has a book value of $3.95 per share. At its current price, the stock is trading at a price-to-book value (or PBV) of ~8.6x. Acadia Pharmaceuticals has a weight of ~0.8% in IBB’s portfolio.
Analysts’ consensus 12-month price target for ACAD is $45.3. Nine analysts recommend “buys” on the stock, one analyst recommends a “hold,” and no analysts recommend “sells.”
Myriad underperforms
Myriad Genetics (MYGN) was the worst mid-cap performer in the week ended May 20, 2016. It fell by 2.2% due to complaints from four patients seeking their genetic testing results.
As per Myriad’s press release, “A complaint was filed against the Company with the Department of Health and Human Services on behalf of four individuals seeking their genetic testing results. The Company believes it has complied with these requests and provided these four patients with their designated record set and all requested personal health information. Therefore, we believe the complaint lacks merit and should not be accepted.”
Myriad Genetics closed at $34.17 and was trading below its 20-day moving average of $35.4. On a YTD basis, the stock fell by 20.8%. As of May 20, 2016, the stock was trading at a 2016 forward price-to-earnings multiple of ~20.8x.
Myriad Genetics has a book value of $10.94 per share. At its current price, the stock is trading at a PBV of ~3.1x. Myriad Genetics has a weight of 0.5% in IBB’s portfolio.
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