Why Investors Haven't Feasted on Two New Weight-Loss ETFs
- New Weight-Loss ETFs: Two new weight-loss exchange-traded funds (ETFs) were launched in May to capitalize on the popularity of obesity drugs.
- Low Investor Interest: The Roundhill GLP-1 & Weight Loss ETF and the Amplify Weight Loss Drug & Treatment ETF have only attracted $29 million and $2.3 million, respectively.
- High Expense Ratios: Both ETFs have a relatively high expense ratio of 0.59%, compared to other healthcare ETFs with lower fees.
- Concentrated Exposure: The weight-loss ETFs are heavily concentrated on two companies, Eli Lilly and Novo Nordisk, which hold licenses for supplying GLP-1 drugs for weight loss.
- Market Growth Outlook: Despite low initial investor interest, the obesity-drug market is expected to grow significantly, with global spending reaching nearly $24 billion in 2023 and a projected compound annual growth rate of 24% to 27% through 2028.
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Analyst Views on IYH
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Significant ETF Withdrawals Observed - IYH, UNH, HCA, ELV
52-Week Range of IYH: IYH's share price has a 52-week low of $53.35 and a high of $66.91, with the last trade recorded at $64.81.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand.
Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (units destroyed), impacting the underlying holdings.
Disclaimer: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
SK Capital reportedly close to acquiring Swixx Biopharma for $1.8 billion
Deal Overview: SK Capital Partners is nearing a deal to acquire Swixx Biopharma SA, a Swiss pharmaceutical distributor, for approximately €1.5 billion ($1.8 billion), with an announcement expected soon.
Competitive Landscape: SK Capital has outbid other potential buyers, including DKSH Holding AG and Lone Star, to secure the acquisition of Swixx, which specializes in commercializing medicines in diverse markets.
Company Profile: Swixx, owned by HBM Healthcare Investments and its management, operates in 45 countries and generated over €900 million in revenue in 2024, focusing on regulatory and packaging requirements for pharmaceuticals.
Investment Focus: SK Capital, founded in 2007, manages around $10 billion in assets and invests primarily in life sciences, specialty chemicals, and materials, although the finalization of the Swixx deal remains uncertain.
Final Trades from CNBC Halftime Report: UnitedHealth Group, Thermo Fisher Scientific, Monster Beverage, iShares U.S. Healthcare ETF
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, indicating a robust network for sharing market intelligence.
Market Success: Traders utilize Benzinga Pro's resources to gain an edge in the markets, aiming for consistent success in their trading activities.
Obamacare Enrollment Begins Despite Significant Price Increases and Political Stalemate
Open Enrollment Changes: The Affordable Care Act (ACA) open enrollment has begun, with significant changes including steep premium hikes, reduced subsidies, and new rules that may lead to surprise tax bills for enrollees.
Impact of Premium Increases: Many insurers are raising rates significantly, causing financial strain for families, particularly those just above the federal poverty threshold, with some experiencing annual premium increases of over $38,000.
New Enrollment Complications: The elimination of year-round sign-up for low-income individuals and the removal of the cap on repayment for underestimated income could lead to unexpected financial burdens during tax season.
Consumer Guidance: Shoppers are advised to actively compare plans and not to auto-renew, as premium structures have changed, and they should remain vigilant for potential subsidy renewals during the enrollment period.
What’s Causing the Decline of Co-Diagnostics Stock on Tuesday?
Stock Plunge: Co-Diagnostics, Inc. shares fell over 50% following the announcement of a $7 million direct offering and a new joint venture in Saudi Arabia, indicating investor concern over potential dilution.
Direct Offering Details: The company plans to sell 12.7 million shares at 55 cents each, with gross proceeds expected to be around $7 million, aimed at working capital and corporate purposes.
Joint Venture Agreement: Co-Diagnostics has partnered with Arabian Eagle to create CoMira Diagnostics, a Saudi joint venture focused on manufacturing and distributing Co-Dx technologies, aligning with Saudi Vision 2030.
Equity Offering Program: The company also disclosed an at-the-market equity offering program of up to $10 million, with Maxim Group LLC acting as the sales agent for the common stock sales.
Breaking Down the Components: IYH on Track for $68
iShares U.S. Healthcare ETF Analysis: The iShares U.S. Healthcare ETF (IYH) has an implied analyst target price of $67.93, indicating a potential upside of 10.54% from its current trading price of $61.45.
Notable Holdings with Upside Potential: Key underlying holdings such as Viking Therapeutics (VKTX), Ultragenyx Pharmaceutical (RARE), and Acadia Healthcare (ACHC) show significant upside potential, with VKTX having a target price 181.87% higher than its current price.
Analyst Target Price Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets could lead to downgrades if they are based on outdated information.
Investor Research Recommendation: Investors are encouraged to conduct further research to assess the validity of analysts' targets in light of recent developments in the companies and the healthcare industry.
Significant ETF Withdrawals Observed - IYH, UNH, HCA, ELV
52-Week Range of IYH: IYH's share price has a 52-week low of $53.35 and a high of $66.91, with the last trade recorded at $64.81.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand.
Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (units destroyed), impacting the underlying holdings.
Disclaimer: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
SK Capital reportedly close to acquiring Swixx Biopharma for $1.8 billion
Deal Overview: SK Capital Partners is nearing a deal to acquire Swixx Biopharma SA, a Swiss pharmaceutical distributor, for approximately €1.5 billion ($1.8 billion), with an announcement expected soon.
Competitive Landscape: SK Capital has outbid other potential buyers, including DKSH Holding AG and Lone Star, to secure the acquisition of Swixx, which specializes in commercializing medicines in diverse markets.
Company Profile: Swixx, owned by HBM Healthcare Investments and its management, operates in 45 countries and generated over €900 million in revenue in 2024, focusing on regulatory and packaging requirements for pharmaceuticals.
Investment Focus: SK Capital, founded in 2007, manages around $10 billion in assets and invests primarily in life sciences, specialty chemicals, and materials, although the finalization of the Swixx deal remains uncertain.
Final Trades from CNBC Halftime Report: UnitedHealth Group, Thermo Fisher Scientific, Monster Beverage, iShares U.S. Healthcare ETF
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, indicating a robust network for sharing market intelligence.
Market Success: Traders utilize Benzinga Pro's resources to gain an edge in the markets, aiming for consistent success in their trading activities.
Obamacare Enrollment Begins Despite Significant Price Increases and Political Stalemate
Open Enrollment Changes: The Affordable Care Act (ACA) open enrollment has begun, with significant changes including steep premium hikes, reduced subsidies, and new rules that may lead to surprise tax bills for enrollees.
Impact of Premium Increases: Many insurers are raising rates significantly, causing financial strain for families, particularly those just above the federal poverty threshold, with some experiencing annual premium increases of over $38,000.
New Enrollment Complications: The elimination of year-round sign-up for low-income individuals and the removal of the cap on repayment for underestimated income could lead to unexpected financial burdens during tax season.
Consumer Guidance: Shoppers are advised to actively compare plans and not to auto-renew, as premium structures have changed, and they should remain vigilant for potential subsidy renewals during the enrollment period.
What’s Causing the Decline of Co-Diagnostics Stock on Tuesday?
Stock Plunge: Co-Diagnostics, Inc. shares fell over 50% following the announcement of a $7 million direct offering and a new joint venture in Saudi Arabia, indicating investor concern over potential dilution.
Direct Offering Details: The company plans to sell 12.7 million shares at 55 cents each, with gross proceeds expected to be around $7 million, aimed at working capital and corporate purposes.
Joint Venture Agreement: Co-Diagnostics has partnered with Arabian Eagle to create CoMira Diagnostics, a Saudi joint venture focused on manufacturing and distributing Co-Dx technologies, aligning with Saudi Vision 2030.
Equity Offering Program: The company also disclosed an at-the-market equity offering program of up to $10 million, with Maxim Group LLC acting as the sales agent for the common stock sales.
Breaking Down the Components: IYH on Track for $68
iShares U.S. Healthcare ETF Analysis: The iShares U.S. Healthcare ETF (IYH) has an implied analyst target price of $67.93, indicating a potential upside of 10.54% from its current trading price of $61.45.
Notable Holdings with Upside Potential: Key underlying holdings such as Viking Therapeutics (VKTX), Ultragenyx Pharmaceutical (RARE), and Acadia Healthcare (ACHC) show significant upside potential, with VKTX having a target price 181.87% higher than its current price.
Analyst Target Price Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets could lead to downgrades if they are based on outdated information.
Investor Research Recommendation: Investors are encouraged to conduct further research to assess the validity of analysts' targets in light of recent developments in the companies and the healthcare industry.
