Biotech stocks delivered their best single month since late 2023 in June, carrying the ALPS Medical Breakthroughs ETF (SBIO ) to one of the top returns across the ALPS lineup.
Key Takeaways:
- SBIO returned 18.7% in June, its best single month since December 2023.
- Apogee, Definium, and Oruka combined to add more than five percentage points to the index’s return.
- Definium surged 92.2% in June despite averaging less than 1% of the index, adding 1.58 percentage points to the return.
SBIO’s underlying index returned 18.7% in June, according to VettaFi. For biotech investors, June showed exactly why clinical-stage exposure matters. Drug trial results and one $10.9 billion buyout drove most of the return.
See more: Biotech ETF Index Surges 10% After Rebalance
Apogee Therapeutics, Inc. (APGE) was the index’s top contributor, with its stock climbing 61.6% and adding 2.18 percentage points to the overall return, according to VettaFi.
AbbVie Inc. (ABBV) announced it would acquire Apogee for roughly $10.9 billion, or $135.11 per share in cash, according to Barron’s reporting. Apogee shares jumped 47% in a single session after the deal was announced. AbbVie’s immunology segment, largely driven by Skyrizi, generated $7.3 billion in its most recent quarter.
Biotech Trial Wins Drove the Other Top Movers
Definium Therapeutics, Inc. (DFTX) was the second-largest contributor despite averaging less than 1% of the index by weight. Its stock surged 92.2% and added 1.58 percentage points to the return, according to VettaFi.
On June 22, Definium announced positive results from its Emerge Phase 3 study, which evaluated a single-dose treatment for major depressive disorder. Robert W. Baird analyst Christopher Chen raised his price target on the stock to $57 from $37 while maintaining an outperform rating following the results, according to reporting from TheFly.
Oruka Therapeutics, Inc. (ORKA) added 1.43 percentage points after its stock gained 62.6%. Oruka reported data from its EVERLAST-A Phase 2a trial, showing 63.5% of patients with moderate-to-severe plaque psoriasis achieved full skin clearance at 16 weeks, according to Investing.com.
Spyre Therapeutics, Inc. (SYRE) and MBX Biosciences, Inc. (MBX) also contributed to the month’s gain. Spyre added 0.97 of a percentage point on a 20.19% return, while MBX contributed 0.77 of a percentage point after gaining 75.41%, according to VettaFi.
Celcuity, Inc. (CELC) was the month’s worst performer in the index, falling 34% and pulling 1.73 percentage points from the return.
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VettaFi LLC (“VettaFi”) is the index provider for SBIO, for which it receives an index licensing fee. However, SBIO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SBIO.
