Sorting Through the Wreckage!
Full post on Investor’s Business Daily.
Biotech stocks took a beating Monday after Peter Marks, a top Food and Drug Administration official, resigned rather than contend with what he described as the new health secretary’s “misinformation and lies.”
Analysts were not surprised by Marks’ clash with Robert F. Kennedy Jr., the new secretary for Health and Human Services. Kennedy is a well-known vaccine skeptic. For 13 years, Marks led the FDA’s Center for Biologics Evaluation and Research, the department in charge of reviewing and approving vaccines, genetic medicines and cell therapies.
Marks has been a key proponent for regulatory flexibility and an efficient approval pathway for drugs, especially those that treat rare conditions.
But his resignation “is not altogether shocking,” RBC Capital Markets analyst Brian Abrahams said.
“Mark has been a vocal stickler for science, and RFK Jr.’s controversial views on vaccinations has become somewhat of a flashpoint, but the news is not good for the biotech industry even beyond vaccines,” he said in a report. “Marks has been a key advocate for more flexible, efficient approval processes for drugs — particularly for orphan diseases.”
The SPDR S&P Biotech exchange traded fund (XBI), a key barometer for the health of biotech stocks, slumped 4%, closing at 81.07.
XBI SHORT TERM
XBI LONG TERM
The biggest hits came to vaccine-tied companies including Vaxcyte (PCVX), Moderna (MRNA) and Novavax (NVAX). Moderna shares fell 8.9%, while Novavax tumbled 8.4%. Vaxcyte collapsed a whopping 45.6%. Notably, Vaxcyte also reported mixed results from a study of its pneumococcal vaccine in infants.
The gene therapy space was also slammed as Sarepta Therapeutics (SRPT) and Crispr Therapeutics (CRSP) fell by 9.4% and 8%, respectively.
Read More: Uncertainty Clouds Biotech Stocks…
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The Good Old Days!
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Plunge On FDA Top Regulator Resigning Generates Buying Opportunity
