Are Biotech Stocks Due for a Correction in 2020?
As good a year as 2019 was for the markets, it was an even better one for biotech. While the S&P 500 rose 30% during the year, many biotech stocks soared much higher. Axsome Therapeutics (NASDAQ: AXSM) skyrocketed more than 3,500% in 2019, dwarfing Seattle Genetics (NASDAQ: SGEN), which "only" doubled, while Vertex Pharmaceuticals' (NASDAQ: VRTX) 32% increase looked downright ordinary.
All three stocks finished the year trading around their five-year highs, and continuing to rise in 2020 may be a tall task for not just them, but biotech stocks in general.
Biotech stocks are very sensitive to news. One major development -- such as a positive result from a clinical trial -- and share prices can take off in a hurry.
Source Fool.com
