Biotech's Longer Convalescence

The biotech sector has fallen, and it doesn't seem able to get up.

Despite an earnings season that has gone reasonably well, biotech stocks don't seem able to get off the floor. The Amex Biotechnology Index lost 4.3% last week and is now down more than 8% year to date after falling another 1.7% to 455.73 on Monday. The Nasdaq Biotechnology Index, which tracks a broader swath of the sector, including more small-cap stocks, lost almost 5% last week, and is down 10% for the year as of Monday's close.

An overall weak market and geopolitical uncertainty take some of the blame for biotech's malaise, for sure. But on a micro level, biotech firms can't seem to catch a break. For a sector that typically runs hot and cold, biotechs, right now, are downright frosty. ...