ARTICLE | Finance

Big cap bloodletting

Why investors slashed $53.1 billion in value from six biotech bellwethers

October 28, 2017 5:28 AM UTC
But buysiders have been waiting all year for the M&A floodgates to open, and year to date there have been only 19 deals valued at $500 million or more (including potential milestones),compared with 31 in 2016 and 44 in both 2015 and 2014, according to BioCentury’s BCIQ database.

Performance of biotechs valued at over $10 billion was already dwindling throughout 2017 before a flood of disappointing earnings began to roll in for several of the largest companies.

In the days since Oct. 19, which kicked off the bloodletting with a clinical miss for Celgene Corp., investors have wiped away an aggregate of $53.2 billion in market cap for six large cap companies. The slide threatens to sour generalists -- who were reported to be tiptoeing back into biotech at the end of 3Q -- on the sector as a whole. ...