Economics
Biotech Resilience Put to the Test as Stocks Drop Into Bear Market
- Clinton tweet on drug prices sparks worst week since 2008
- Nasdaq Biotechnology Index down 22 percent from July high
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Biotechnology stocks plunged into a bear market amid concerns over drug prices, presenting one of the year’s best-performing industries with its biggest test of resilience.
The Nasdaq Biotech Index saw five pullbacks of more than 6.6 percent over a 14-month period ending in August, and each time the gauge recovered the loss within about a month. Even after last month’s market-wide correction, the iShares Nasdaq Biotech ETF regained much of its loss in a three-week period.