Biotechs Are Ripping Following IPAB Ruling

Biotech stocks were mostly higher on Wednesday after the U.S. government said that Medicare, the health-care program for the elderly and disabled, will be exhausted in 2028 which is 2 years sooner than projected last year. In addition, the U.S. government said that a cost-cutting mechanism known as the Independent Payment Advisory Board (IPAB) is projected to be triggered in 2017. According to Bloomberg, investors have been "nervously" awaiting on news for the IPAB determination on fears that it could have been triggered in 2016 and set in motion reductions in Medicare payments to biotech and pharmaceutical companies. Biotech Stocks Surging Biotech stocks were mostly higher on Wednesday, led by the iShares NASDAQ Biotechnology Index (ETF) IBB which was trading higher by nearly 3 percent. At the same time, the SPDR S&P Biotech (ETF) XBI was trading higher by nearly 2 percent. The 2x leveraged-ProShares Ultra Nasdaq Biotechnology ETF BIB gained more than 5 percent. Here are how some of the notable biotechnology names were performing: Shares of ACADIA Pharmaceuticals Inc. ACAD were trading lower by 1.17 percent. Shares of Amgen, Inc. AMGN were trading higher by 1.53 percent. Shares of Celgene Corporation CELG were trading higher by 3.76 percent. Shares of Gilead Sciences, Inc. GILD were trading higher by 2.14 percent. Shares of Valeant Pharmaceuticals Intl Inc VRX were trading higher by 4.25 percent.