3 Best Performing Biotech Funds So Far In 2019
Zacks Investment Research | Dec 02, 2019 08:48PM ET
The biotechnology industry has surpassed the S&P 500 so far this year, turning up as one of the best performers this year. The better-than-average performance of the industry has been mainly driven by mergers and acquisitions, initial public offerings (IPOs), introduction of biosimilars, collaborative operations, rising use of AI and new job opportunities.
In fact, the major biotech ETFs and indexes have performed impressively so far this year. The SPDR S&P Biotech ETF (NYSE:XBI) has gained 26.7% year to date, while the ProShares Ultra Nasdaq Biotechnology (BIB) added 38.4%.
Biotechnology mutual funds are good investment options regardless of how the financial markets are performing. Investors who wish to make the best of the biotechnology industry’s gains could consider investing in mutual funds focused on biotechnology companies.
M&As, IPOs & Tie-Ups Keep Biotech in the Limelight
The biotechnology sector has been in news since the beginning of 2019. A significant number of companies participated in mergers and acquisitions. In January alone, two major deals were signed. First, Bristol-Myers Squibb Company (NYSE:BMY) announced that it will acquire Celgene Corporation (NASDAQ:CELG). The acquisition was finally completed in November 2019.
Takeda Pharmaceutical Company Limited completed the acquisition of Shire in January. In the very next month, Eli Lilly and Company (NYSE:LLY) acquired Loxo Oncology. This acquisition extended the scope of the former’s oncology portfolio into precision medicines via the addition of an array of highly selective potential medicines for patients that suffer from genomically defined cancers. There were many other such deals announced during the period.
The number of IPOs has also been vast in 2019. In fact, the numbers have been rising steadily over the last couple of years.
This is because biotechnology firms call for much financing, particularly when they advance in their research. Going public not only makes it easier to take care of the financing they need but also gives them more visibility in the industry. This may open up opportunities for acquisitions and collaborations later on, thus helping the company.
The industry was also in news because of a number of collaborations this year. In October, Amgen (NASDAQ:AMGN) announced a strategic collaboration with BeiGene to help the former expand its oncology presence in China.
Earlier this year, Biogen (NASDAQ:BIIB) and C4 Therapeutics announced a collaboration to evaluate the use of the latter’s novel protein degradation platform. The companies plan to discover and develop treatments for patients with neurological conditions.
The Future of Biotechnology Shines
According to Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.