Healthy returns from booming biotech names

Long term investors can look to the sector for a dose of safety in uncertainty, and sometimes, “spectacular profitability”

Vikram Barhat 18 December, 2019 | 1:00AM

Pills in a cup

The biotech industry has had a great run this year. From new drugs for critical illnesses to innovative treatments and a wave of strategic acquisitions, there is plenty happening in the lab space.

The S&P Biotechnology Select Industry Index has amassed more than 31% gains for the year to date, nearly double the 17% returns for the broader S&P 500 Health Care, and handily topping the 27% rise in the S&P 500. The Nasdaq Biotechnology index has also climbed about 29%, for the same period, as of Dec 12, 2019.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Biogen Inc301.57 USD0.04
Gilead Sciences Inc76.00 USD1.47
Merck & Co Inc79.84 USD2.95
Roche Holding AG350.00 USD-0.41

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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