Pfizer (PFE) and Allergan (AGN) may have seen their stocks bruised after calling off their tax-saving merger deal. But drug stock investors overall actually are getting a much-needed shot in the arm as the canceled deal opens up opportunity.
The SPDR S&P Biotech exchange-traded fund (XBI) and the SPDR Pharmaceuticals ETF (XPH) jumped roughly 4% and 6%, respectively, since Monday after the Treasury Department announced new rules to curb the practice of inversions. Out of the 20 pharmaceutical and biotech stocks in the Standard & Poor’s 500, 11 are up on the week. Allergan, the jilted target, is the only stock down by a large amount, about 15%.
