By Ben Levisohn
It’s been a bad, bad week for biotech stocks. The iShares Nasdaq Biotech Index ETF (IBB) had dropped 9.3% this week through Thursday’s close, while Amgen (AMGN), Biogen Idec (BIIB), and Celgene (CELG) also suffered big losses. Evercore ISI’s Mark Schoenebaum notes that the valuations of big biotech companies is trading below that of the S&P 500 for only the second time in 10 years after those huge drops. Here’s the evidence:
Evercore ISI technical analyst Richard Ross thinks biotech could be bottoming:
Ross explains what you’re seeing:
It’s interesting that the low of the 2014 BTK pullback, while steeper in magnitude essentially lines up in terms of timing,” Ross says. “Note that the bottom in 2014 was reached on or about late April/Early May after peaking in Feb/March. Bodes well here. We could be close, very close to a turn
Shares of Biogen Idec have gained 3.3% to $386.10 at 11:47 a.m. today, while Amgen has advanced 1% to $159.56, and Celgene has risen 1.7% to $109.93. The iShares Nasdaq Biotechnology ETF is up 2.2% at $341.01.