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`http://www.bidnessetc.com/21468-news-analysis-biotech-sell-off-drags-nasdaq-100-down-to-2-year-lows/
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`Biotech Sell Off Drags NASDAQ-100 Down To 2-Year Lows
`
`Yesterday’s drop in the Nasdaq Composite Index (IXIC) marked the greatest one-day drop in the index since
`November 2011. Momentum stocks in the internet and biotech space were once again responsible for the 3.1% drop.
`
`Biotech saw major selling pressure yesterday; 12 of the 30 greatest price declines were in biotech companies. The
`NASDAQ Biotech Index (NBI) was down 5.64%, putting its year-to-date performance down 2.2%.
`
`The iShares NASDAQ Biotechnology Index (ETF) (IBB) fell 5.61% while the SPDR S&P Biotech (ETF) (XBI) was
`worse off with a 6.46% decline. The selloff is part of the overall market selloff that happened with investors reducing
`stakes in high-growth biotech stocks to move to safer, less volatile investments.
`
`The second round of selloffs in less than a month is an indication that the biotech-space investors have turned
`bearish. Sell side analysts, however, are holding onto their strong ratings on large cap biotech stocks, which include
`Biogen Idec Inc. (BIIB), Celgene Corporation (CELG), Gilead Sciences, Inc. (GILD), and Amgen, Inc. (AMGN). Two of
`these stocks – Biogen and Amgen – recorded declines of over 4% in trading yesterday, and the other two – Celgene
`and Gilead – were down more than 7%.
`
`On February 25, 2014, the biotech industry hit its peak, before the decline set in. The SPDR S&P Biotech (ETF) (XBI)
`has shed 22.05% since, while the iShares NASDAQ Biotechnology Index (ETF) (IBB) – the largest biotech ETF – is
`down 18.8% in the same time-frame. Such large declines may give rise to more concerns among investors and the
`downward momentum could potentially continue.
`
`The fears, though, are likely to subside given that biotech stocks did see high growth but they are not as expensive as
`when the bubble burst at the turn of the century. Also, Gilead’s drug-pricing issue, that had stoked fears among
`investors, could also subside, as CVS Caremark (CVS) released its insight report detailing that specialty medication –
`which most biotechs produce – saw a 15.6% growth, while prescription drug trend rose 3.8%. CVS identified
`increased utilization and price inflation as key growth drivers.
`
`The Affordable Care Act, or Obamacare, has increased the number of people who will be able to get prescription
`medication – which would be another driver for the growth in the use of specialty medicine.
`
`The market, however, still has room to drop further. Below is the list of Biotech stocks that lost out the most yesterday.
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`Page 1
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`% Decline
`18.34%
`13.45%
`13.18%
`12.73%
`12.44%
`12.11%
`11.8%
`11.69%
`11.64%
`11.21%
`11.09%
`11.15%
`7.32%
`.5.6%_
`
`
`
`.
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`Biotech Comgany/Index/ETF
`Regado Bloscie nces (RGDO)
`Kind ered Biosciences (KiN}
`PTC Therapeutics. Inc.(PTCT}
`Heat Biologics. Inc. (HTBX)
`Adamas Pharmaceuticals,|nc. (ADMS)
`Alnylam Pharmaceutical. Inc (ALNY)
`Nuralstern. Inc. (CU R)
`Newlinkfienetics Corporation (NLNK)
`Intercept Pharmaceutical (ICPT)
`Chemocentryx Inc (CCXIJ
`Vanda pharmaceutical (VNDA)
`Proshares Ultra Nasdag Biotech (ETF) (BIB)
`Gilead Sciences (GILD)
`ishares NASDAQ Biotechnology Index (ETF) (IBB)
`
`
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`Celgene Corporation (CELG)
`
`Amgen, Inc (AMGN)
`NASDAQ Biotechnoiogy NBI
`SDDR SEP Biotech (ETF) (XB|)
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`BIDNESS
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