Markets are undergoing a bit of uncertainty and low trends as the second quarter kicks off. Biotech stocks are being perceived as the major victim of this market stall. Dow came well below 17,000 with Nasdaq tumbling 1.4%. Discussing the low biotech stocks in a program, CNBC’s Meg Tirrell said that the biotech stocks are coming down as the whole market is expected to experience bearish trends in the coming weeks.
The first low biotech stock is Zogenix, Inc (NASDAQ:ZGNX), a small-cap pharmaceutical company focused on developing therapies to treat chronic pain and central nervous system disorders. Zogenix, Inc (NASDAQ:ZGNX) stock tumbled as much as 12%. The reason behind this was the drug by Zogenix, Inc (NASDAQ:ZGNX) rival, Purdue Pharma, which has launched a resistant hydrocodone tablet. This tablet is getting priority by Food and Drug Administration.
Another biotech stock, bluebird bio Inc (NASDAQ:BLUE), a clinical-stage biopharmaceutical company developing gene-based therapies to treat orphan diseases and other genetic disorders came down today by 10% after bluebird bio Inc(NASDAQ:BLUE) announced its intention to offer common stock after the closing bell last night.
Sarepta Therapeutics Inc (NASDAQ:SRPT), which was performing well in the first quarter is also down. Two months ago, Sarepta Therapeutics Inc (NASDAQ:SRPT) announced that its going to launch its experimental drug for Duchenne muscular dystrophy. The announcement came after Sarepta Therapeutics Inc (NASDAQ:SRPT) lost 64% of its market value in one year.