US Biotech Braces for Market Adjustments that Could Lead to Layoffs and Closures

Despite the expansion of the biotech industry in recent years, many are predicting an upcoming market adjustment that could negatively impact many in the field. US biotech stocks have dropped in the past year, with some losing up to 80-90% of their value. In addition, smaller firms have turned to layoffs as funds have begun to run dry.

According to Ryan Cross of the Boston Globe, “One of the most popular biotech indices, called XBI, is down 27 percent since the start of the year and nearly 50 percent off of its peak in early February 2021. By contrast, the S&P 500 is up about 13 percent over that same time.”

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(Source: Boston Globe, April 19^th, 2022)