Britain’s vote to leave the European Union has left many scrambling to determine the impact on markets and various sectors. But one sector that is unlikely to be affected is biotech, according to RBC Capital Markets analyst Michael Yee. He said in a Friday note that he expects biotech to be “generally somewhat insulated from EU economic uncertainty,” since biotech drugs are life-saving, non-discretionary products and thus won’t face less EU business, the industry has little interaction with the UK and the sector is generally less economically sensitive and less elastic. Companies with EU revenue exposure include Amgen Inc. at about 22% of OUS sales, Biogen Inc. at about 25%-30%, Celgene Corporation at about 38%-40% and Vertex Pharmaceuticals Inc. at a growing 25%, Yee said, based on 2016 estimates. The SPDR S&P Biotech ETF dropped 3.3% in morning trade, compared with a 2.5% drop in the S&P 500 .
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