The Dow Jones US Biotechnology Index, iShares NASDAQ Biotechnology Index (ETF), SPDR S&P Biotech (ETF), ALPS Medical Breakthroughs ETF and BioShares Biotechnology Clinical Trials Fund all rose. The price movements positively affected big names including Amgen (NASDAQ:AMGN), Gilead Sciences (NASDAQ: GILD), Regeneron Pharmaceuticals (NASDAQ: REGN), Biogen (NASDAQ: BIIB), Alexion Pharmaceuticals (NASDAQ: ALXN), Illumina (NASDAQ: ILMN), United Therapeutics (NASDAQ: UTHR), Merck & Co (NYSE: MRK), Thermo Fisher Scientific (NYSE: TMO) and Celgene Corporation (NASDAQ:CELG).
Prior to that there had been a sector-wide sell-off in the first five months of the year. The market rout, led by turmoil in China and the oil price collapse, along with some sector specific issues, weighed heavily on the sector's exponential growth. This led to a risk-off environment with many investors drawing out investment from this intensifying and high beta sector. The Dow Jones US Biotech Index and the NASDAQ Biotech Index, both lost 27.68% and 34.04% year-on-year to June 24, 2016, reflecting that the sector was indeed on a bearish run. Shares of Amgen declined 8.41% to US$146.45, while Celgene dropped 19.15% to US$96.29. Biogen slipped 44.23% to US$229.02, while Regeneron Pharmaceuticals has fallen 34.28% to US$339.48.
This of course depends on the direction of the markets in the wake of the UK Brexit vote that delivered a sharp blow to market confidence and sparked risk aversion across the board. The damage the vote inflicted on the market could not have come at a worse time for biotech stocks. #MergentInc #industryreports #biotechnology #brexit