4 Stocks & ETFs To Buy On Clovis' Positive Drug Data

Biotech stocks had “their best day since February” on June 19, 2017 with SPDR S&P Biotech (MX:XBI) ETF XBI adding about 3.6% on the day. iShare Nasdaq Biotech ETF IBB too gained 2.41% on June 19 (see all Health Care ETFs here).

Two factors boosted the space. Clovis Oncology (NASDAQ:CLVS) shares gained 46.5% following the company’s positive cancer drug data, as per CNBC. The company said clinical trial data on its ovarian cancer drug treatment indicated that it may substantially help more patients than expected.

Rubraca, the FDA-approved drug, is meant to keep patients cancer free after remission. Also, an overall rebound in the high-beta tech space lent a helping hand to the biotechnology space.

ETFs Hitting 52-Week Highs

The news acted as a cornerstone for the entire space. Several leveraged and non-leveraged biotech ETFs touched a 52-week high on June 19. Leveraged ETFs that hit a 52-week high, offered exorbitant gains on June 19. Direxion S&P Biotech Bull 3X LABU (up 10.75%), Ultrapro Biotechnology Proshares UBIO (up 7.44%) and Ultra Nasdaq Biotech Proshares BIB (up 4.89%) were to name a few.

Cancer Stocks and Related ETFs in Focus

Since immuno-oncology treatments hold enormous commercial market, companies that are focusing on this segment deserve a mention. Investors should note Clovis’ news led rival Tesaro's shares to decline about 2%, as per the source. As a result, merger and acquisition possibilities are high in the space (read: Merger Arbitrage 101: Investing in Acquisitions with an ETF?).

Overall, investors may want to buy the below-mentioned stocks and ETFs that gained on June 19 and have considerable exposure to cancer treatments (read: Time to Buy Biotech ETFs?).

Stock Picks

Cancer Genetics Inc. (NASDAQ:CGIX)

Cancer Genetics operates as a diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve the diagnosis, prognosis and response to treatment of cancer. The Zacks Rank #3 (Hold) stock gained about 5.5%. The Zacks Industry Rank is in the top 42%.

Incyte Corporation (NASDAQ:INCY)

Incyte Corp is a drug discovery company that is using its expertise in genomics, medicinal chemistry and molecular, cellular and in vivo biology. The company has drug discovery programs underway targeted at the identification of new small molecule drugs for cancer and inflammation. The Zacks Rank #3 stock added about 3.6%.

Celldex Therapeutics Inc. (NASDAQ:CLDX)

CELLDEX THERAPEUTICS is an integrated biopharmaceutical company that applies its comprehensive Precision Targeted Immunotherapy Platform to generate a pipeline of candidates to treat cancer and other difficult-to-treat diseases. The Zacks Rank #2 (Buy) stock was up over 1.7%.

Kite Pharma Inc. (NASDAQ:KITE)

Kite Pharma is a clinical-stage biopharmaceutical company, focusing on the development and commercialization of cancer immunotherapy products. KITE was up over 1.6% on the day.

ETF Picks

Bioshares Biotech Products (BS:BBP) – Up 3.53%

The underlying index of the fund is an equal-weighted index that looks to track the performance of the U.S. biotechnology companies with a primary product offering or product candidate that has received the U.S. Food and Drug Administration approval.

Bioshares Biotech Clinical Trial (HM:BBC) – Up 3.15%

The underlying index of the fund is equal weighted and gives exposure to biotechnology companies with a primary product offering that is in a phase I, phase II or phase III clinical trial stage of development.

Alps Medical Breakthroughs ETF (SI:SBIO) – Up 2.89%

The underlying index of the fund picks research & development opportunities in the pharmaceutical industry. It comprises small-cap and mid-cap pharmaceutical and biotechnology stocks listed on U.S. stock exchanges having one or more drugs in either phase II or phase III U.S. FDA clinical trials.

Loncar Cancer Immunotherapy ETF CNCR – Up 2.5%

The index gives exposure to companies that develop therapies to treat cancer by harnessing the body’s own immune system.

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