Will biotech bounce back following August sell-off?

Index plunged by more than 20% from peak

Carl Harald Jansonm, lead investment manager on the International Biotechnology investment trust, looks at how the sector has fared following the most recent sell-off

The US biotechnology sector’s stupendous bull run went into sharp reverse in August when the NASDAQ biotechnology index plunged by more than 20% from its peak value in July, before recovering.  The sector has been one of the best performing sectors, increasing by 580% since the recovery in equity markets started in March 2009. Between January and July this year, the NASDAQ Biotech index rose by 30%, despite a lacklustre performance in US equities. The sharp decline in August saw growth stocks in general bear the brunt of negative market sentiment because these companies are reliant on...