Regeneron and Shire Drag Down Top Ten Stocks by Market Cap

Biotech Market Update for Week Ended September 4

(Continued from Prior Part)

IBB’s bottom ten stocks outperform the top ten stocks

Within the iShares Nasdaq Biotechnology ETF (IBB), going by market cap, the bottom ten stocks outperformed the top ten stocks. The bottom ten stocks’ average return was -1.68% for the week ended September 4, 2015. The top ten stocks’ average return was -4.73% for the same period.

All top ten stocks within IBB were down for the week. The stocks that lost most were Regeneron Pharmaceuticals (REGN), Shire (SHPG), Amgen (AMGN), and Celgene (CELG). The stocks fell 6.84%, 5.70%, 5.69%, and 5.36%, respectively.

The above graph reflects the performance of the top ten stocks and the bottom ten stocks for the week ended September 4, 2015.

Regeneron and Shire pull down the performance of the top ten stocks

Regeneron Pharmaceuticals (REGN) fell 6.84% for the week ended September 4, 2015. Investors didn’t get excited by the news of new positive Praluent Phase 3 data announced by REGN and Sanofi (SNY) at the ESC (European Society of Cardiology) Congress 2015.

REGN also announced the discovery of 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). REGN has a weight of 7.26% in IBB.

Shire (SHPG) fell 5.70% for the week ended September 4, 2015. SHPG and Sangamo will restructure their collaboration. According to the press release, under the new agreement, “Shire will return to Sangamo the exclusive world-wide rights to gene targets for the development, clinical testing and commercialization of ZFP Therapeutics for hemophilia A and B. Shire will retain rights and will continue to develop ZFP Therapeutic clinical leads for Huntington’s disease.”

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Browse this series on Market Realist:

• Part 1 - Regeneron and Endo International Underperform

• Part 2 - Incyte and Neurocrine Trade above 100-Day Moving Averages

• Part 4 - Alnylam and United Therapeutics: Worst Performers of Mid-Cap