LCHINA Index Methodology Amendment
Lenexa, KS -- July 25, 2018 -- Loncar Investments, LLC today announced an amendment to the methodology of the Loncar China BioPharma Index (LCHINA), the world’s first global benchmark tracking the performance of companies leading China’s biotech revolution.
The amendment is related to how LCHINA companies are screened for their roots in China and focus on the territory. If a company's principle headquarters is not located in China, it must be determined by the Index Provider to have at least 51% of its product revenue and pipeline value tied directly to the China market (up from 25%). The index is meant to chart the growth of China biopharma leaders, and this amendment has been made to ensure that only companies that are sufficiently focused and active in the region are included.
The amendment will be implemented at the close of the U.S. markets on July 26th and will become effective at the open on July 27th. It is expected that two companies (Athenex and Fibrogen) will be impacted by the change. Their weights will be redistributed to the remaining 30 index constituents on a pro rata basis.
Professional Industry Index: The Loncar China BioPharma Index (LCHINA) uses a modified equal-weighting approach to track 30 leaders powering China’s biopharma revolution. It is rebalanced and reconstituted on a semi-annual basis. Price and return data are independently calculated on a daily basis by Indxx, LLC. Quotes for the symbol “LCHINA" can be found on the Bloomberg Professional service, Thomson Reuters Eikon, Google Finance, www.LoncarIndex.com and other financial data providers. The closing value corresponds to the close of Nasdaq each day.
Index provider: Loncar Investments, LLC is committed to making the biotechnology space more approachable to a wider range of investors. It incorporates extensive research into biotech companies and technologies to develop stock market indexes that are focused on precise investment opportunities. Its first two indexes are the Loncar Cancer Immunotherapy Sector Index (LCINDX) and the Loncar China BioPharma Industry Index (LCHINA). The company is principally owned by biotech investor and analyst Brad Loncar.
Opinions expressed are subject to change, not guaranteed, and should not be considered investment advice. One may not directly invest in an index.
Jill Tatios for Loncar Investments