Biotech May Be Ready to Get Off the Floor
For the biotech sector, it feels like late September.
Battered biotech stocks are revisiting the lows last seen in the weeks after the terrorist attacks in New York and Washington, D.C. And like those pessimistic times, there are few biotech traders on Wall Street willing to step up and buy.
But on a brighter note, there were good signals Friday that the sector might be hitting a bottom, observers say. So when do biotech stocks start rising in a significant way? Unfortunately, that's a question few are brave enough to answer.
"When it's raining outside for as long as it has, it's hard to think about seeing the sun tomorrow," says Jon Alsenas, fund manager at ING Furman Selz Asset Management, summing up the doldrums gripping normally buoyant biotech investors these days.Real numbers bear witness to the troubles. The bellwether Amex Biotechnology Index slumped Friday to an intraday low of 423.44, a level not seen since the opening of trading post-Sept. 11. A small recovery was staged at midday, but it petered out at the end of the day. The index closed Friday at 428.94, which dropped it 11% for the week and 25% for the year. Friday is certainly a day diehard biotech investors want to forget, but a recap of the carnage is instructive to understand what might lie ahead. The day actually opened with some optimism because Amgen
One Thing Leads to AnotherThat led to across-the-board losses Friday: Amgen, despite good news, fell 2.5%; Genentech
|Biotech Hits the Floor
A test of post-Sept. 11 lows is in the offing
|Source: Yahoo! Finance|
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