NEW YORK, NY / ACCESSWIRE / December 21, 2016 / After many years of impressive gains for investors the Biotech Industry has experienced downward pressure in 2016. The iShares NASDAQ Biotechnology Index ETF (IBB) is down over 20 percent year-to-date, while the broader indexes, the Dow Jones and the S&P 500, have posted gains of 14.6 percent and 11.1 percent, respectively, year-to-date. In 2015, the iShares NASDAQ Biotechnology Index ETF (IBB) posted an overall gain of 11.5 percent, with a sharp sell-off following its peak in late July 20 2015 till end of year. The S&P 500 Index posted an overall loss of 0.73 percent in 2015.

Register with us now for your free membership and gain access to our latest Biotech reports at: www.rdinvesting.com/subscribe-today/.

Biotech stocks surged immediately following Donald Trump's Presidency. The general assumption had been that a Hillary Clinton White House would have been a major negative for biotechs and pharmaceuticals given her very public stance against the "price gouging" going on within the industry. A report by Leerink Partners in late October estimated that concerns of a win by Democratic presidential nominee Hillary Clinton triggered a $50 billion biotech selloff prior to the election.

Reuters has published on November 11, that a combination of a potential influx in foreign cash, lower corporate taxes and higher stock valuations could potentially boost merger and acquisition activity in the biotech industry. Prime acquisition targets such as Tesaro and Sarepta could see some renewed interest, according to analysts interviewed by Reuters. It could also throw a lifeline to smaller biotech firms, which on average have only 11 months of cash left to finance their research. Many biotech companies have resisted offers from companies trying to take advantage of the sector's sell-off.

RDInvesting Takes a Closer Look at Some Biotech Companies as We Enter 2017

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)

Get Your Up-To-Date ACADIA Research Report at www.rdinvesting.com/company/ACAD.

ACADIA Pharmaceuticals' shares spiked 12.35 percent to close at $28.57 a share Tuesday. The stock traded between $27.26 and $30.14 on volume of 18.51 million shares traded. ACADIA is focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders. On Tuesday, the company released encouraging results from its Phase II exploratory study (-019 Study) of pimavanserin in patients with Alzheimer's disease psychosis. Shares of ACADIA Pharmaceuticals have fallen approximately 19.9 percent year-to-date and are down roughly 3.3 percent in the past month.

Conatus Pharmaceuticals Inc. (NASDAQ: CNAT)

Get Your Up-To-Date Conatus Research Report at www.rdinvesting.com/company/CNAT.

Conatus Pharmaceuticals' shares soared 141.33 percent to close at $4.73 a share Tuesday. The stock traded between $4.27 and $5.50 on volume of 39.80 million shares traded. The company is focused on the development and commercialization of novel medicines to treat liver disease. On Tuesday, Conatus entered into an exclusive option, collaboration and license agreement with Novartis for the global development and commercialization of emricasan. Conatus will receive $50 million upfront from Novartis, and is eligible to receive an additional $7 million following the exercise of the license option. Conatus can borrow up to $15 million in the form of convertible promissory notes under an investment agreement with Novartis. Shares of Conatus Pharmaceuticals have gained approximately 64.2 percent year-to-date and are up roughly 149.0 percent in the past month.

Research Driven Investing

We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.

RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.

Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

CONTACT

For any questions, inquiries, or comments reach out to us directly at:

Address:

Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011

Email:

contact@rdinvesting.com

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: RDInvesting.com