As world markets fluctuate, FierceBiotech writes that the biotech sector is a bit shaken. On Monday, the US stock market fell dramatically in the morning before rising again in the afternoon, with the New York Times noting that the decline likely stemmed from concerns regarding the slowing of the Chinese economy.
Celgene, which FierceBiotech says was an early bellwether stock, had its shares drop 21 percent before regaining much of that before closing Monday down 4.76 percent. The overall biotech Nasdaq index, it adds, ended Monday down about the same amount as Celgene and "(most) investors and traders breathed a sigh of relief as the threatened tsunami failed to hit."
Still, it notes that IPO activity may slow down for a while. "If the market just has a couple of days' shock and then stabilizes, then I don't think anybody's plans will change," Gil Luria, a Wedbush analyst, tells USA Today. "But if we see a worse sell-off and the volatility stays high, then I think companies are going to hold off."
As GenomeWeb reported Monday, RainDance pulled its IPO, citing market conditions.
Today, the Wall Street Journal reports that global markets appear to be stabilizing.