This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sector Watch: Biotechs Pull Back Following Recent Surge

Tech stocks across the board had a down day Wednesday after a week of consistent gains, and biotech stocks weren't able to escape the decline. The Dow Jones U.S. Biotech Index had climbed 15.3% in the week leading up to yesterday's close, before slipping back 3.4% today. The index is up more than 39% since the recent Nasdaq low on April 4.

"It's similar to what we're seeing in the rest of tech," said Rob Cohen, the co-head of listed trading for Credit Suisse First Boston. "People put a lot of money to work over the last week. Buyers are just taking a breather."

Abgenix (ABGX) fell hard today, losing 11.5% to $40.35. Human Genome Sciences (HGSI) lost 6.4% to $68.46 today, while Gilead Sciences (GILD), a company developing drugs to deal with infectious diseases, fell 6.5% to $54.04.

The Nasdaq Biotechnology Index had added 17.8% during the last week, and 53.2% since April 4, but it fell 3.8% today. Cohen noted that the moves weren't attended by "a lot of volume or heavy selling."

Millennium Pharmaceuticals (MLNM), one of the biggest biotech gainers in the last week, climbing by 34.7%, lost 5.7% today to $41.80. Imclone Systems (IMCL), which was all over the press last week for its research announcements coming from the American Society of Clinical Oncology conference, gained 23.4% in the past week, before losing 5.3% to $47.61 today.

Biogen (BGEN) fell 6% to $59.79 today, while OSI Pharmaceuticals (OSIP) dropped 5.8% to $48.10. The Nasdaq 100 Index, which includes a broad range of tech stocks, including biotechs, fell 3.1%. Amgen (AMGN) slipped 1.7% to $65.15.

One biotech notable headed higher today was Genome Therapeutics (GENE), which rose sharply after a positive research report this morning from Ladenburg Thalmann. The firm, according to reports, rated Genome Therapeutics a strong buy, saying that the company is "a leader in using pathogen genomes to find anti-infective drugs." The firm also put an $84 price target on the stock. Shares of Genome Therapeutics traded for $13.05 earlier, a gain of 39.5% on the day.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs