The Nasdaq biotechnology index has fallen more than 14 percent in January, and large pharmaceutical companies have also taken a hit. Moderna’s stock fell 37 percent on the S&P 500, and BioNTech is down 37 percent, too.
Investors are favoring safe bets in industries like energy and banking and dumping stocks in high-risk, high-reward companies in the technology, biotech and healthcare sectors.
Potential regulatory challenges such as potential drug pricing reform and a tougher crackdown on mergers may also be affecting investors’ decisions to sell off their stock.
