Biotech sticks it to stocks – CNBC.com

“That’s a high-profile move. That could make people concerned,” said Steve Massocca of Wedbush Securities. “It’s not exactly the cheapest group around. It’s got an elevated valuation here. It does nothing but go up. It doesn’t take much to create a wobble.”

“It doesn’t appear to be hurting other speculative areas. The social media index is up three-quarters of a percent,” he added, referring to SOCL, the Global X Social Media Index ETF.

Biogen also was rocked, down 3 percent after losses Friday on news that its key oral multiple sclerosis drug, Tecfidera, saw sales fall 10 percent, its first decline ever.

The company posted lower-than-expected earnings and revenue. It said Tecfidera’s quarter was “challenging” and affected by a slowdown in the MS market. Biogen also warned that its growth could be lower than expected if sales do not improve.

Amgen also was lower, after FDA staff said an accelerated review of its skin cancer immunotherapy cannot be currently considered. The agency’s reviewers said it was unclear whether the treatment, talimogene laherparepvec, improved overall survival. The treatment was to come before a panel of FDA advisors this week.

The decline in biotechs helped turn the broader market lower after early gains.

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Biotech sticks it to stocks – CNBC.com