Health Stocks Roar Back as High-Flying Biotechs Regain Steam
(Bloomberg) — Health stocks roared on Tuesday as investors flocked back to high-flying biotechnology companies and diagnostics firms who have developed tests to track Covid-19.
Money managers were quick to snap up shares of the market’s riskiest assets with beaten down drug developers like those using Crispr-Cas9 gene editing technology leading the rebound. The strength was widespread across the health-care industry with all but a few stocks in the S&P 500 Health Care Index trading higher as everything from life sciences toolmakers to large pharmaceutical stocks gained.
The share price rally for the group came as investors rushed back into momentum stocks despite another regulatory hiccup in the biotechnology space for Acadia Pharmaceuticals Inc. The iShares U.S. Medical Devices ETF, known by its ticker IHI, is on pace for its best day in nine months with each of its 63 components trading higher.
The gains spread out to biotechnology exchange-traded funds like the closely watched SPDR S&P Biotech ETF and Cathie Wood’s ARK Genomic Revolution ETF. The rallies were led by gains for Intellia Therapeutics Inc., Twist Bioscience Corp., and CareDx Inc. which each surged more than 15%.
The gains helped erase this year’s losses for the benchmark Health Care Select Sector SPDR Fund. However, the index remains down 3% from a high in late January.