Biotech ETF XBI Hits an Interest Rate Wall as 40+ Catalysts Approach
B. Riley sees 40+ biotech catalysts ahead as rising rates pressure XBI, setting up a key test for the sector during the Q3 2026 earnings season.
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Tema's new Healthcare AI ETF (HLTH), targets AI-powered drug discovery, diagnostics, robotics and patient care.
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B. Riley sees 40+ biotech catalysts ahead as rising rates pressure XBI, setting up a key test for the sector during the Q3 2026 earnings season.
AbbVie and Bristol Myers Squibb are compared as pharmaceutical investment options for 2026. AbbVie is recommended as the better buy due to its successful immunology franchise with Skyrizi and Rinvoq driving growth, diversification into aesthetics and neuroscience, and having navigated its patent cliff challenges. Bristol Myers Squibb, while cheaper on valuation metrics and maintaining strong profit margins, faces revenue stagnation, legal uncertainties from a Celgene acquisition lawsuit, and is still working through its own portfolio transition challenges.
Bristol Myers Squibb's Camzyos demonstrated durable reductions in LVOT obstruction over five years with 97.4% of patients achieving target gradients. Sales surged 74% year-over-year to $729 million in H1 2026. The company seeks FDA approval for adolescents with a decision expected by September 30, 2026. However, competition is intensifying with Cytokinetics' Myqorzo approved in December 2025 and Edgewise Therapeutics advancing EDG-7500 in clinical trials.
Cytokinetics announced that management will participate in multiple investor conferences in September 2026. The company highlighted positive results from its ACACIA-HCM Phase 3 clinical trial for aficamten in non-obstructive hypertrophic cardiomyopathy (nHCM), with plans to submit a Supplemental New Drug Application in Q4 2026. The trial demonstrated statistically significant improvements in both patient-reported and physician-assessed endpoints.
Cathie Wood’s ARKG bought Ionis, Beam, Veracyte and Scribe Therapeutics. Here are the biotech ETFs that also hold her latest bets.
Biotech companies are increasingly directing capital toward oncology therapeutics, with over $3.9 billion of venture capital flowing into cancer and immunology drug developers in H1 2026. The global oncology drugs market is projected to grow from $256.5 billion in 2025 to nearly $700 billion by 2034, prompting investors to consider biotech ETFs for diversified exposure to this growth opportunity rather than individual stocks.