IBB’s Top 10 Mid-Caps Outperform XBI’s Top 10 Mid-Caps

IBB and XBI Underperform Benchmark Indexes for August 10-17, 2015

(Continued from Prior Part)

In the mid-cap space, IBB outperforms XBI

In the mid-cap space, the iShares NASDAQ Biotechnology ETF’s (IBB) top ten stocks outperformed the SPDR S&P Biotech ETF’s (XBI) top ten stocks.

The graph below reflects the performance of the top ten mid-cap stocks of IBB and XBI on a week-over-week basis. IBB’s top ten mid-cap stocks rose by 0.19% while XBI’s top ten mid-cap stocks fell by 0.78% for August 10–17, 2015. For the previous week ended August 7, 2015, the returns were -5.92% and -7.5%, respectively. IBB’s top ten mid-cap stocks outperformed XBI’s top ten mid-cap stocks.

Alnylam outperforms while Intercept, Opko, and Intrexon underperform

After losing 16% for the week ended August 7, 2015, Alnylam Pharmaceuticals (ALNY) rebounded and rose by 5.47% for the week of August 10–17, 2015. The stock went up on the news of the RNAi (RNA interference) roundtable held on August 14, 2015. The roundtable concerned RNAi therapy for the treatment of antitrypsin deficiency, which is associated with the liver. It has a weight of 1.60% in IBB and a weight of 1.15% in XBI.

Intrexon (XON) plummeted by 14.4% as it announced its 2Q15 results. According to the company’s press release, XON’s total revenue was $44.9 million. However, it also reported a net loss of $40.7 million. During the quarter, it earned collaboration revenue of $115 million from Merck KGaA. XON has a weight of 0.90% in XBI. IBB does not have any holdings in Intrexon.

Intercept Pharmaceuticals (ICPT) had a weight of 0.91% in XBI and fell by 11.68% for the week. The stock went down on poor 2Q15 results. Plus, the investors do not appear to be curious about the initiation of Phase II trial of lipid metabolism and the launch of the Phase III trial of REGENERATE. Both are part of the NASH (nonalcoholic steatohepatitis) program addressing this liver disease. According to Intercept Pharmaceuticals, “NASH is the most common cause of fibrosis and cirrhosis in patients with unexplained increased alanine aminotransferase.”

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Browse this series on Market Realist:

• Part 1 - Benchmark Indexes Continue to Outperform IBB and XBI

• Part 2 - Incyte Helps XBI to Outperform IBB’s Top 10

• Part 4 - Comparing IBB’s and XBI’s Small-Cap Stocks