biotech slowdown?
A biotech slowdown? - The Boston Globe

biotech slowdown?
By Steven Syre, Globe Columnist | August 9, 2005

Listen closely, and you may be able to hear a little bit of air escaping from the biotech stock balloon.

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Sign up for: Globe Headlines e-mail | Breaking News Alerts Biotechnology stocks have been on a tear over the last four months, but they eased back slightly over the past few trading days. It's tempting to see the most recent activity as a breather before biotech stocks resume their climb. It's more rational to view it as the early evidence of a stalling stock sector.

First, some background: Biotech shares stumbled through the first three months of 2005. Investors who had been upbeat on many biotech companies fell into a funk over product-safety issues. They were spooked by serious problems with Tysabri, the new multiple sclerosis drug developed by Biogen Idec Inc. and Elan Corp., not to mention Merck & Co.'s ongoing Vioxx disaster.




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