Yahoo Finance Regeneron and Endo International Underperform
Biotech Market Update for Week Ended September 4
IBB falls 4.58%
The global economy continues to be under pressure from the continued woes of the Chinese economy. However, the macro data from the United States seem to be strong and could be the case for the Fed to hike the interest rate at its September meeting.
Commodities also remained volatile. The SPDR S&P 500 ETF (SPY) fell 3.33% for the week ending September 4, 2015. Biotech stocks, which are considered riskier stocks, also continued the trend and underperformed the broader market. The iShares Nasdaq Biotechnology ETF (IBB) fell 4.58%.
The above graph reflects the performance of SPY, IBB, and other biotech stocks.
Regeneron and Endo International underperform
Regeneron (REGN) has discovered the cause of a rare genetic bone disease. According to the press release, “Regeneron scientists found that another ligand, Activin-A, in combination with the ACVR1 protein, normally ‘turns off’ signaling by the BMPs, and is thus believed to play a role in regulating the volume of bone growth. However, they also discovered that in the presence of the ACVR1 mutation, Activin-A instead ‘turns on BMP signaling, driving the abnormal bone growth that is characteristic of FOP” (Fibrodysplasia Ossificans Progressiva).
Regeneron and Sanofi (SNY) announced new positive Praluent Phase 3 data at the ESC (European Society of Cardiology) Congress 2015. Although there was positive news, the stock still fell 6.84% and followed the prevailing downward trend. REGN has a weight of 7.26% in IBB. REGN stock closed at $499.99 on September 4, 2015.
Endo International (ENDP) announced that Xiaflex has been listed in the Japanese National Health Insurance (or NHI) drug price standard. ENDP has a collaboration with Asahi Kasei Pharma and was expected to launch the product in Japan on September 6, 2015. ENDP expects $40 million upon achieving the milestone.
ENDP fell 7.24% since there was news that Morgan Stanley has downgraded the stock. The stock closed at $73 on September 4, 2015.
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