econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 30 October 2015

Biotech Stocks Have Now Reached Bear Market Territory

by Kyle Anderson, Money Morning

Money Morning Article of the Week

The S&P 500 has dropped 3.8% since the end of July, but that's nothing compared to the losses we've seen from biotech stocks.

In fact, this week's latest pullback has many biotech stocks in bear market territory. Since July 20, the Nasdaq Biotechnology Index is down more than 24%. In the same time, the S&P 500 Biotechnology Select Industry Index is down 29.7%.

While the broader markets all tumbled in late August following the stock market crash in China, many have rebounded. Since Aug. 29, the S&P 500 has rebounded 2.8%.

But the biotechnology indices have only continued to fall. Here's a look at their performance since July 20, compared to the S&P 500:

Here's why biotech stocks in particular have performed so poorly lately...

Why Biotech Stocks Are Underperforming

Biotech stocks have been hammered recently as pharmaceutical companies continue to face scrutiny for high drug prices.

Martin Shkreli, CEO of Turing Pharmaceuticals, received very public criticism in September for raising the price of a life-saving medication by 5,000%. That put focus on the entire pharmaceutical sector.

Shortly after, a report from The Wall Street Journal indicated the 30 highest-selling drugs in the United States saw their prices increase roughly 76% from 2010 through 2014. During the same time, demand only rose 20%. That made it clear the price gouging was not just limited to one or two companies.

Finally, the Valeant Pharmaceuticals Intl. Inc. (NYSE: VRX) stock drop this week sent ripples through the market.

VRX stock has dropped more than 45% this week alone after a report from Citron Research called the company "the pharmaceutical Enron." The report alleges that Valeant engaged in a series of sham transactions to inflate its drug sales.

All three of these factors have combined to bring down biotech stocks over the last several months. The sell-off could persist as regulators continue to investigate the recent practices of major pharmaceutical companies.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Investing


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Why Long-Run Theories of Profit and Accumulation Fall Short
Brexit - Who Wins and Loses
News Blog
April 2017 Chemical Activity Barometer Suggests Continued Growth Through 2017
Final April 2017 Michigan Consumer Sentiment Slips but Remains Strong
Richmond Fed Manufacturing Survey Again Improves In April 2017.
March 2017 Headline New Home Sales Improve and Above Expectations
Case-Shiller 20 City Home Price Index February 2017 Shows 5.9 % Year-over-Year Growth
Infographic Of The Day: Comparison Of Population Density
Early Headlines: Asia Stocks, Dollar, And Oil All Up, Gold Down, China Stocks Diverge, Bankrupt Retail, Courtiers To Palace Wed., US Starts Trade War With Canada Over Lumber, And More
April 24, 2017 Weather and Climate Report - All Too Normal!
The Countries With The Fastest Internet
CO2 Levels And Global Warming
Worthless Mining Waste Could Suck CO Out Of The Atmosphere And Reverse Emissions
Average Gasoline Prices for Week Ending 24 April 2017 Rose Over 1 Cent
The Worst Roads In The USA
Investing Blog
Irrational Exuberance From France
The Real 401k Plan Manager 24 April 2017
Opinion Blog
Reducing Inequality Could Be A Matter Of Survival
America's Gilded Age 2: On The Rocks
Precious Metals Blog
Three Gold Plays For The New Era Of Chaos
Live Markets
25Apr2017 Pre-Market Commentary: Most Global Markets Are In The Green
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved