Biotechs Get Bashed Again, but Backers Aren't Backing Down

For some, Tuesday saw another sickening slide in a volatile sector. For others, it was the day biotech simply became buy-o-tech.

Companies spanning the biotech world -- from genomics to monoclonals to antisense and gene therapy, from the mighty Amgen (AMGN Quote) to the tiniest Magainin (MAGN Quote) -- contributed Tuesday to the sector's biggest one-day dive in months, prompted by government calls for cheap access to a growing mountain of genetic data. The Nasdaq and Amex biotech indices each dropped 13%.

The selloffs, topping 30% in intraday trading in some cases, appeared as indiscriminate and therefore as baffling as the huge run-ups that preceded them, experts say. After all, it had been known all along that data from the Human Genome Project -- the giant public-private effort to map the human genetic makeup -- was slated for release to researchers in coming years. And that had biotech analysts cautioning investors not to sell first and ask questions later, despite the weeklong slide in the once-hot stocks.

Political effect

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