Biotech ETF news

Filed under: Biotech ETF

One of fastest moving and most interesting parts of the stock market is around the biotech sector. While the majority of the biotech ETF range has reported big gains recently there are some major developments coming up soon which could affect both the individual stock prices and the biotech ETF profits.

1. Novartis gets green light. The FDA has given the go ahead for Novartis to proceed with their version of Lovenox, the blood thinning drug. There are strong hopes that this shows a hugely profitable way forward for biotech companies who are seeing patented drugs reach their expiry.
2. Take overs. One hot rumor which could have a big effect on the biotech ETF market is the suggested take over of the biotech business of Genzyme by Sanofi-Aventis SA.
3. The federal ruling which has put a stop to federal funding on human embryonic stem cell research has reopened a long running debate about this sensitive and potentially long reaching investigative work. Whatever your thoughts are on the subject your biotech ETF will be undoubtedly affected by the outcome, so it is well worth keeping an eye on developments. Some biotech firms saw steep drops after the announcement was made, although declarations about the extent of the impact on some of the businesses helped reverse the trend in a few of the cases.
4. The future of algae. It has been reported that a team of top biochemists are working on using our humble friend algae as some form of modern biofuel. If the boffins can work out how to create or modify algae which convert solar light into fuel then you can imagine the stock market mayhem which would follow.
5. Epilepsy drug gets nearer. Eisai has reported good progress in the tests being carried on its epilepsy drug known as perampanel. A worldwide testing program consisting of 25 countries and over 700 patients has been positive to date and 2012 is the expected date of submission to both US and European authorities.
6. Pfizer report disappointing Sutent study. The Phase III study which Pfizer has carried out on Sutent did not meet the expectation of effectively combating non small cell lung cancer and the firm has promised more analysis on the subject.

I have chosen those particular stories out of the whole gamut of biotech related stories which are around to show you the impact which both huge, headline stories and small, tucked away in the specialist publications articles can have on your biotech ETF. This is a volatile industry, which is why an ETF is so strongly recommended in the first place, and changes are going to be the only constant factor.

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