What's Behind the Biotech Crash?

Biotech investors aren't used to seeing shares of their favorite companies tumble, but that's exactly what's been happening so far this year. The iShares Nasdaq Biotech Index, the ETF that tracks the performance of this sector, has started to rebound in recent days. However, the index is down almost 4% year to date.

IBB Chart

Source: IBB data by YCharts

To gain more insight into why this sector is underperforming the broader market this year, and reasons why big pharma company Sanofi  could be one way long-term investors may get exposure to this sector, analysts Matt Koppenheffer and Max Macaluso discuss the recent tailwinds that drove up biotech stocks in 2013, and the headwinds that the industry is now facing. The video below, from The Motley Fool's show Where the Money Is, also covers the reasons behind big biotech Gilead's recent poor performance, and challenges that the company is currently facing.

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The article What's Behind the Biotech Crash? originally appeared on Fool.com.

Matt Koppenheffer has no position in any stocks mentioned. Max Macaluso, Ph.D. owns shares of Celgene and Gilead Sciences. The Motley Fool recommends Alnylam Pharmaceuticals, Celgene, Gilead Sciences, and Isis Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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