Two ETFs to Play a Bounce Back in Biotech

The lack of major drug launches last year - along with disappointing quarterly results from the likes of Biogen (BIIB), Celgene (CELG) and Gilead (GILD) – dragged down biotech stocks last year. The downtrend has continued into 2016, but the turn could soon be at hand, said Paul Yook, portfolio manager for BioShares BioTechnology ETFs. 'When you have a lack of big launches and you have missed earnings, that’s going to depress the sector,' said Yook. According to Yook, the three key issues that pulled biotech down starting in mid-summer 2015 were largely disappointing major clinical trials, a record low number of FDA approvals on new drugs in 2015 in comparison to the boom in 2012 and 2013, and lastly the largest biotech players posting disappointing financial results.