This Biotech ETF is Breaking Out to Six-Month Highs

The iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) is breaking out to new six-month highs this morning, driven in no small part by a big drug development win by Biogen Inc (NASDAQ:BIIB).

Biogen’s New Atrophy Drug Meets Goal

In a joint drug venture with Ionis, Biogen said its investigational treatment for infantile-onset spinal muscular atrophy demonstrated statistically significant improvement in certain motor functions, according to an interim analysis of late-stage study data.

Biogen has accordingly exercised its option to develop and commercialize the treatment, which is known as nusinersen. The next step is for the drug to advance for regulatory review. Assuming it gets FDA approval, the treatment could come to market in the next couple of years.

Biogen shares surged $15.39 (+5.31%) to $305.32 in Monday trading.

Biotech ETF Jumps to Six-Month Highs

The NASDAQ Biotechnology Index ETF continued its recent tear as well, adding evidence to the argument that its late-June lows represented a cyclical low and a great buying opportunity.

The IBB rose $6.51 (+2.25%) to $295.95 per share in Monday morning trading. Year-to-date, the ETF is still down 12.5%, but its bounce since June 27 has seen it gain 22% and cut its YTD losses in half.

IBB-2016-08-01

Stay tuned as the biotech sector continues to heat up, with new drug developments, M&A activity, and more earnings still to come in a very busy earnings season.

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