Does Biotech Bearishness Lie Ahead?

The biotech sector experienced a big shock on Monday, December 22, just one trading day after new record intraday and closing highs had been reached by the four most-heavily-traded biotech ETFs: the iShares Nasdaq Biotechnology Index ETF (IBB), the SPDR S&P Biotech Index ETF (XBI), the Market Vectors Biotech ETF (BBH) and the First Trust NYSEARCA Biotechnology Index ETF (FBT).

GILDThe epicenter of Monday’s biotech-quake was Gilead Sciences (GILD). On October 10, the FDA approved the Gilead’s newest hepatitis C drug, Harvoni, a once-per-day tablet, which has been found to cure 90 percent of Hepatitis C patients within eight weeks. Harvoni does not require the use of ribavirin and interferon. Gilead’s predecessor hepatitis C drug, Sovaldi, would be used for 12 weeks at a cost of $84,000 per patient. Because Harvoni is used for only eight weeks, the cost per patient is $63,000. (more)

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