Investors may want to pay close attention to biotech.
Especially with the latest biotech M&A boom.
“Asset sales, cash distributions, reverse mergers, M&A and several positive datasets have helped lift Biotech off of once unfathomably low levels and back towards respectability despite still being off close to 30% YTD,” Oppenheimer says, as quoted by Barron’s.
Amgen, for example, just bought ChemoCentryx (CCXI) for $4 billion. Vertex is buying ViaCyte for $320 million. Pfizer is acquiring Global Blood Therapeutics in a deal valued at $5.4 billion.
The list goes on…
While investors can always hunt for the next potential M&A takeover, another way to potentially profit from the story is with an ETF, such as the SPDR S&P Biotech ETF (XBI). With an expense ratio of 0.35%, some of the ETFs top holdings include Global Blood Therapeutics, Twist Bioscience, Chemocentryx, Beam Therapeutics, Fate Therapeutics, and Editas Medicine to name a few.