Let's not mince any words here. This sell-off of biotech stocks is completely unjustified. In fact, it's the worst treatment investors have served on an industry that has made great strides since the well-deserved slump of '92. It's not exactly a secret that there are more product revenues, more drugs awaiting FDA approval, and more compounds in late-stage development than ever before. If that's not creating value, we don't know what is.

Unfortunately, that's small comfort when the sector just finished the worst week it's had since we started tracking it in late 1992: down 9 percent. The last time it was this bad was the week ended Feb. 19, 1993, when President Clinton launched his war on drug prices. The BioCentury 100 Price Level fell 9 percent that week, too. And since peaking this year at 1534.5 the week ended May 24, the BioCentury 100 is down 349.5 points (23 percent) to 1185. That's ridiculous.