Biotech Stocks record the worst start in decades
- Moderna Inc.’s 37% drop, that turned Moderna into the worst performer in the S&P 500.
- BioNTech & CureVac facing a milder drop
Main factor perceived to be the interest-rate worries, adding to other industry worries as stocks from biotechnology or the health-care industry, have been beaten back this month as investors retreat from risk.
Nasdaq Biotechnology Index has fallen more than 14% in January.
Adding to the markets concern, as the Federal Reserve are preparing to start raising interest rates, meaning higher rates weigh hard on the valuations of growth stocks, and that’s adding to consistent concerns on patent longevity, drug-pricing reform and tougher merger rules.
But Jefferies analyst argues, that it will take time for investors to regain their confidence back in biotech.
*Moderna stock rose over 28% during 2021
