Why Biotech Stocks Such as Biohaven, Recursion Pharmaceuticals, and CRISPR Therapeutics Plunged in March
Shares of early-stage biotech stocks, including Biohaven (NYSE: BHVN), Recursion Pharmaceuticals (NASDAQ: RXRX), and CRISPR Therapeutics (NASDAQ: CRSP), plunged in March, with the stocks down 35.3%, 29.6%, and 22.5%, respectively, according to data from S&P Global Market Intelligence .The stocks endured multiple headwinds during the month, especially Biohaven, which had one of its drug candidates deliver underwhelming results in a recent study. In addition, all money-losing biotechs sold off hard along with the broader market, as lower equity valuations could make it harder for these companies to raise capital to fund their research.Finally, the resignation of a key Federal Food and Drug Administration (FDA) regulator toward the end of the month cast a pall over the FDA approval process under the tenure of new Secretary of Health and Human Services, Robert F. Kennedy Jr.Continue reading
Shares of early-stage biotech stocks, including Biohaven (NYSE: BHVN), Recursion Pharmaceuticals (NASDAQ: RXRX), and CRISPR Therapeutics (NASDAQ: CRSP), plunged in March, with the stocks down 35.3%, 29.6%, and 22.5%, respectively, according to data from S&P Global Market Intelligence .
The stocks endured multiple headwinds during the month, especially Biohaven, which had one of its drug candidates deliver underwhelming results in a recent study. In addition, all money-losing biotechs sold off hard along with the broader market, as lower equity valuations could make it harder for these companies to raise capital to fund their research.
Finally, the resignation of a key Federal Food and Drug Administration (FDA) regulator toward the end of the month cast a pall over the FDA approval process under the tenure of new Secretary of Health and Human Services, Robert F. Kennedy Jr.
