The accompanying table includes the Top 40 rated companies in the ETF Innovators (ETFI) Emerging Bio-Pharma Index, which includes U.S.-listed companies with market caps between $150M-$1.5B and factors in each companies approved products, late-stage clinical pipeline, trailing 52-week stock price performance, and market cap weighting to calculate a stock rating.
The index has performed much better than its peers over the past year for both the Top 40 Rated (-9%) and all 76 companies (-15%) – doing better than the Healthcare Sector SPDR (XLV) (-33.6%), iShares Nasdaq Biotech (IBB) (-26%), PowerShares Dynamic Pharma (PJP) (-24%), iShares Micro-Cap Index (IWC) (-50%), and iShares Russell 2000 Small-Caps (IWM) (-46.7%).
The index is structured to include innovative, research-driven biotech and pharmaceutical companies while excluding generic drugs (
ETFI Healthcare Cost Containment Index), diagnostic products (
ETFI Preventive Medicine), and over-the-counter products – which are already tracked in the respective indexes listed.
Also, check out the related post on 52 companies with market caps below $150M which includes
potential buyout candidates based on several deals over the past year focused on out-of-favor, micro-cap cancer drug development companies. The Top 40 rated companies include a mix of development stage cancer biotechs such as Dendreon (DNDN) & Synta Pharma (SNTA), vaccine maker Emergent BioSolutions (EBS), regenerative medicine developer Osiris Therapeutics (OSIR), cardiovascular drug developer CV Therapeutics (CVTX), and niche enzyme-based drug maker BioMarin Pharma (BMRN).
