OIS Index Tracks Flat US Stock Market and Healthcare Sector Performance in March
In October, we launched the OIS Index, a composite of ophthalmic growth stocks, to track the investment performance of our sector. Our goal is to highlight ophthalmology investment performance, in absolute terms and compared with broader biotech and medical device industries, as well as the stock market as a whole. The OIS Index was launched with an initial value of 1,000 on October 1; as of the market close on March 30, the OIS Index stood at 876.99.
The post-election rally, which sent US stocks steadily higher between November and February, took a pause over the past month. Between February 28 and March 30, the OIS Index gained 0.7%, tracking the flat performance of healthcare industry benchmarks and the overall US stock market. Over this period, 12 of the 32 stocks in the index increased in value, compared with about two-thirds of stocks gaining value during February.
While the OIS Index gained 0.7% over the past month, the NASDAQ Biotechnology Index (NBI) declined 1.2% and a composite of US medical device stocks gained 1.3%. The Russell 3000 Index, which represents the overall US stock market, gained 0.1%.
OIS Index – Three Month Performance
December 30, 2016 – March 30, 2017
Drivers of OIS Index Performance
The largest contributor to OIS Index performance in March was Omeros Corp. (+2.0% contribution to index performance, stock up 28.4%), following up a similarly strong performance in February. The stock posted a strong finish to the month on the announcement of positive Phase II clinical data in renal diseases. The second largest contributor to index performance was Glaukos Corp. (+1.3% contribution to index performance, stock up 12.7%), which reported strong quarterly results on March 1.
The largest percentage gainer in March was Imprimis Pharmaceuticals (+0.4% contribution to index performance, stock up 73%). The stock rallied following the company’s quarterly report on March 21 and announcement of a registered direct offering on March 22.
The largest negative impact on the OIS Index in March came from Spark Therapeutics (–1.5% impact on index performance, stock down 16%), and from Iridex Corp. (–0.8% impact on index performance, stock down 24%). On a percentage basis, the largest decliner in the OIS Index in March was TearLab Corp. (–0.2% impact on index performance, stock down 40%).
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