Virtus LifeSci Biotech Clinical Trials ETF (BBC) Options

Biotechs' Second-Half Battle

https://seekingalpha.com/article/4276463-biotechs-second-half-battle

Big pharma’s billion-dollar bets
As patents lapse and funding on R&D is cut, big pharma is spending big money on risky takeovers to find the next blockbuster drug. In this animated film, Due Diligence's Arash Massoudi explains how Bristol-Myers Squibb’s $90B takeover of Celgene has set the stage for more to come in 2019.
As investors have exerted pressure on big pharma to cut back spending on research and development that can result in expensive disappointments, incumbents have been acquiring smaller competitors to replenish drug pipelines.
Nimble start-ups, in contrast, are not weighed down by legacy businesses and can focus on innovation. Many fail but those that succeed, or even show promise by producing just one drug, instantly become takeover targets.
Underpinning these acquisitions is a gamble. Should a big company buy a start-up that has potential but has not proven its worth? Or wait and miss out on a short cut to high returns and new products?

https://bigdeal.ft.com/videos/big-pharmas-billion-dollar-bets/?utm_source=TW&utm_medium=publishers&utm_content=image_card

How high will the Healthcare/Biotech sector go in 2019?
So what's the answer? My answer is very similar to the 2018 results. I expect we will see very strong gains continue into the first half of the year and taper off for this sector as they have every year since at least 2015. Many of the gains through the April to July seasonality period have been quite strong in the past and delivered a large percentage of the annual gains for stocks in this sector. As I continue with long positions in Healthcare and good gains in LABU year to date, I expect to participate in this effect until it is arbitraged away.

https://seekingalpha.com/article/4252996-healthcare-breakout-beat-2018-forecast-high-will-go-2019

Biotech Is Worth The Hype, But Do You Have The Data?

https://seekingalpha.com/article/4245949-biotech-worth-hype-data

IBB: This Is Only The Beginning

https://seekingalpha.com/article/4242004-ibb-beginning

Biotech Bonanza: The Mergers And Acquisitions Theme

https://seekingalpha.com/article/4240702-biotech-bonanza-mergers-acquisitions-theme

A recent analysis by EvaluatePharma revealed that based on the historical data over the past 5 years, a majority of the buyouts have occurred for products in the Pre-clinical and Phase II stages.

The lower number of Phase III buyouts is understandable as such assets are also more scarce, besides being at a higher valuation, compared to the volume of assets available in Pre-clinical and Phase II.

The analysis also indicated that the leading therapy area for buyouts remains Oncology, as it has been for many years.
BBC Daily Chart
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Biotech Bonanza: Biotech Stocks To Keep Shining In 2018
Dec. 19, 2017

https://seekingalpha.com/article/4132749-biotech-bonanza-biotech-stocks-keep-shining-2018

FDA TO UNLOCK INTERIM ENDPOINTS FOR ACCELERATED APPROVALS

This could help put a solid base under the ETF:
https://www.biocentury.com/bc-extra/politics-policy/2017-11-30/fda-unlock-interim-endpoints-accelerated-approvals

I`ve done pretty good on individual BT stocks in 2017 but it may be harder to make big gains on owning individual names as opposed to a basket of stocks in 2018 as the market have run so strong. Therefore as a counterbalance I have avoided trading IBB,XBI,LABU, etc. and taken positions in these 2 little known ETF`s. They have a low expense ratio, are thinly traded yet i`ve had no problems buying and selling. Take a look at the holdings in each to see if they would be appropriate to other ETF`s. Hope others may find these interesting as I have for your portfolio balance in the biotech sector.

Given the number of disappointments in biotech lately, I wanted to express some thoughts about the context. My conclusion is that on the one hand, supply-demand factors suggest that it will be a challenge for the sector as a whole to get hot for some time, but that on the other hand, many leading biotechs, as we know, have below-market P/Es, so the process of repair may already be underway.

The way to play the next wave:

$BBC: Virtus LifeSci Biotech Clinical Trials ETF

http://portfolios.morningstar.com/fund/holdings?t=BBC
Virtus LifeSci Biotech Clinical Trials ETF (BBC) Top Portfolio Holdings
Get top portfolio holding details for Virtus LifeSci Biotech Clinical Trials ETF (BBC) including annual turnover...


$BBP: Virtus LifeSci Biotech Products ETF BBP

http://portfolios.morningstar.com/fund/holdings?t=BBP
Virtus LifeSci Biotech Products ETF (BBP) Top Portfolio Holdings
Get top portfolio holding details for Virtus LifeSci Biotech Products ETF (BBP) including annual turnover, asset...

BANK OF AMERICA: There's one area of the stock market that stands above the rest
Joe Ciolli
Oct. 30, 2017, 12:48 PM
Scientists researchers laboratory biotechU.S. Army RDECOM / Flickr
Out of all the most appealing areas of the US stock market, Bank of America Merrill Lynch identifies biotech as the No. 1 option.
The firm likes biotech's ideal combination of relatively cheap valuation, high expected growth and considerable upside potential.


Right now, it seems like there's opportunity in the stock market no matter where you look.
Tech companies are surging to yet another series of record highs following blockbuster earnings reports for many of the sector's mega-cap titans. Wall Street strategists are getting more bullish on banks as rate hikes loom. And that's not to mention the stocks set to benefit most from tax reform.
But Bank of America Merrill Lynch sees one industry standing above them all: biotech.

To them, drug developers offer an ideal combination of attractive pricing and upside growth — unlike their tech stock counterparts, which are sitting near the most expensive on record. BAML also likes the upside offered by biotech based on how traders are currently positioned on the sector, especially when compared to the crowded tech trade.
Back in late September, BAML head US equity strategist Savita Subramanian wrote the following about drug developers: "Biotech trades at one of the biggest discounts to history of all industries, suggesting over 40% implied upside if its relative P/E reverted back to its long-term average."
An update of that analysis shows that biotech now has an implied potential upside of 42%.
Here's a list of BAML's best sector opportunities:

Another area of the stock market that BAML highlighted in a recent client note is consumer staples. While the firm still only has the equivalent of a neutral rating on the space, it notes that it's trading at the most attractive valuation in 6 1/2 years.
"Today, staples now looks cheap versus history," Subramanian wrote in a client note on Monday. "Coupled with its earnings resiliency during downturns, staples is currently our preferred defensive sector after our overweight healthcare."
http://markets.businessinsider.com/news/stocks/stocks-market-news-bank-of-america-says-biotech-is-best-bet-2017-10-1006195048

2017 will go down as one of the leanest years for M&A across the sector in many years. This level of deal volume has not been seen since 2013. However, given the replenishment needs of biotech/drug giants, their robust balance sheets and possibly positive tax policy changes, 2018 should be a banner year for deals in the sector. Later this week, we will discuss several small and mid-cap names that make logical acquisition candidates in the year ahead.

Virtus LifeSci Biotech Clinical Trials ETF BBC Performance:

http://portfolios.morningstar.com/fund/holdings?t=BBC

For most biotech investors we own and trade a few individual stocks that we think are promising and will make a decent return over time. So here is an alternative power play for those returns in you favorite stocks without taking on the high risk owning one or more names only. BBC has 76 Positions within the BioShares Biotechnology Clinical Trials ETF as of 10/27/2017.

https://www.virtus.com/products/bioshares-biotechnology-clinical-trials-etf#shareclass.619/period.quarterly