Here's Why Biotech Stocks Adaptimmune Therapeutics, Agenus, and Ocugen All Crashed in November
Biotech stocks had an unusually poor showing in November. Over the past 10 years, the bellwether SPDR S&P Biotech exchange traded fund (NYSEMKT: XBI) has lost ground all at one time in this particular month, and even then, this ETF only dropped by 3.66% for the entire month. Last month was an entirely different story, however. The SPDR S&P Biotech ETF shed almost 7% of its value in November of 2021, thanks to a flurry of headwinds.
Biotech stocks took a beating last month in response to a hefty spike in core inflation in the U.S., the emergence of the omicron coronavirus variant on the world stage, the growing appeal of cryptocurrencies to risk-tolerant investors, tax-loss harvesting, and the Food and Drug Administration's (FDA) strategic decision to prioritize the regulatory review of COVID-19 products at the expense of non-COVID therapies. This chaotic environment led to investors hitting the sell button on scores of promising biotech stocks in November.
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Source Fool.com
