4:17 PM
Apr 13, 2018
 |  BC Extra  |  Financial News

Biotech finishes week strong due to M&A

Biotech indexes outpaced the broader markets this week, thanks in part to a pair of large deals.

The NYSE Arca Biotechnology Index (BTK) and SPDR S&P Biotech ETF (XBI) both gained more than 8% for the week, while the BioCentury 100 was up about 7% and the NASDAQ Biotechnology Index (NBI) added just under 5%.

The Standard & Poor’s 500 index and the Dow Jones finished the week up about 2%, while the NASDAQ Composite ended up about 3%.

On April 9, Novartis AG (NYSE:NVS; SIX:NOVN) said it is acquiring gene therapy company AveXis Inc. (NASDAQ:AVXS) for $218 per share, or about $8.7 billion. The price represents an 88% premium to AveXis' close of $115.91 on April 6, before the deal was announced. Two days later Alexion Pharmaceuticals Inc. (NASDAQ:ALXN) said it would acquire Wilson Therapeutics AB (SSE:WTX) for SEK232 per share in cash, or about SEK7.1 billion ($848 million). The price represents a 70% premium to Wilson's close of SEK136.20 before the deal was announced (see BioCentury Extra, April 9 & April 11).

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