The accompanying table (click to enlarge) highlights the Top 40 Rated stocks (sorted alphabetically) in the ETF Innovators (ETFI) Emerging Bio-Pharma Index of biotech and pharmaceutical companies with market caps of $200M-$1.5B. The rating system factors in each company's number of innovative clinical pipeline + marketed products, market cap weighting, and historical stock price return.
The Emerging Bio-Pharma Index has outpaced benchmark ETFs such as iShares Nasdaq Biotech (NASDAQ:IBB), PowerShares Dynamic Pharma (NYSEARCA:PJP), and the Healthcare Sector SPDR (NYSEARCA:XLV) over the past year. Since I last updated the index one month ago, M&A + licensing deals have resulted in upside for several companies and the overall performance of the entire index has improved – with the Top 40 Rated companies posting a 13% gain in the past year and all 64 companies losing an average of 10% on an equally-weighted basis.
1.) Omrix Biopharma (OMRI) rose 18% in the past month on a takeover bid from Johnson & Johnson (NYSE:JNJ)
2.) Isis Pharma (ISIS) rose 30% on word that Abbott Labs (NYSE:ABT) would pay $215M to acquire the Ibis Biosciences unit of ISIS
3.) Exelixis (NASDAQ:EXEL) rose 113% on news of a global cancer rug collaboration with Bristol-Myers (NYSE:BMY) and a 1.3M share stake by Icahn Capital
4.) Emergent BioSolutions (NYSE:EBS) continued its amazing run with an additional 45% gain in the past month on a sBLA approval for BioThrax (anthrax vaccine), which reduces the number of required doses and changes the route of administration
5.) Nektar Therapeutics (NASDAQ:NKTR) gained 48% in the past month on the sale of its pulmonary drug unit to Novartis (NYSE:NVS)
6.) Auxilium Pharma (NASDAQ:AUXL) added 38% in the past month on news of a licensing deal with Pfizer (NYSE:PFE)