Market Overview

Biotechs Are Ripping Following IPAB Ruling

Biotechs Are Ripping Following IPAB Ruling

Biotech stocks spiked higher on Wednesday after the U.S. government said that Medicare will be exhausted in 2028, two years sooner than projected last year.

In addition, the U.S. government said that a cost-cutting mechanism known as the Independent Payment Advisory Board (IPAB) is projected to be triggered in 2017.

According to Bloomberg, investors have been "nervously" awaiting on news for the IPAB determination on fears it could have been triggered in 2016 and set in motion reductions in Medicare payments to biotech and pharmaceutical companies.

Biotech Stocks Surging

The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB) was trading higher by nearly 3 percent, while the SPDR S&P Biotech (ETF) (NYSE: XBI) was trading higher by nearly 2 percent.

The 2x leveraged-ProShares Ultra Nasdaq Biotechnology ETF (NASDAQ: BIB) gained more than 5 percent.

Here are how some of the notable biotechnology names were performing:

  • Shares of ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) were trading lower by 1.17 percent.
  • Shares of Amgen, Inc. (NASDAQ: AMGN) were trading higher by 1.53 percent.
  • Shares of Celgene Corporation (NASDAQ: CELG) were trading higher by 3.76 percent.
  • Shares of Gilead Sciences, Inc. (NASDAQ: GILD) were trading higher by 2.14 percent.
  • Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) were trading higher by 4.25 percent.

Posted-In: Biotech CompaniesBiotech News Health Care Legal Top Stories Movers General Best of Benzinga


Related Articles (ACAD + AMGN)

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