Biotech Performance 'Particularly Impressive,' Says JP Morgan

In a biotech industry overview on Tuesday, analysts at JP Morgan noted that biotech should outperform the NASDAQ, S&P 500 and Russell 2000.

The NYSE ARCA BIOTECH INDEX BTK and NASDAQ Biotechnology NBI have gained 9.1 and 7.4 percent, respectively, this year.

The analysts said that the recent rally has been “liquidity driven,” which is the reason that BTK outperformed NBI.

Specific company performance, however, has been mixed with the performance of key pharmaceuticals. JP Morgan analysts noted that Gilead Sciences, Inc. GILD did well as Harvoni prescriptions continue to grow. Gilead is higher by nearly 10 percent this year.

AbbVie Inc ABBV and Enanta Pharmaceuticals Inc ENTA have not done as well with its Viekira Pak.

Finally, the analysts said that biotech’s outperformance was “particularly impressive” in light of sector rotation and the pending resignation of the FDA Commissioner.