Alkermes FDA Refusal: Biotech ETFs Dragged Down

Biotechnology stocks and biotech ETFs were among the worst performing areas of the markets Monday as Alkermes (NasdaqGS: ALKS) shares plunged after the U.S. food and Drug Administration refused to review the drugmaker’s treatment for depression.

The First Trust NYSE Arca Biotechnology Index Fund (NYSEArca: FBT) was the worst performer Monday, falling 5.6% and testing its long-term support at the 200-day simple moving average.

The SPDR S&P Biotech ETF (NYSEArca: XBI) and the iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB) both declined 4.8% Monday.

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Meanwhile, the Direxion Daily S&P Biotech Bear 3X Shares (NYSEArca: LABD), which takes the -3x or -300% daily performance of the S&P Biotechnology Select Industry Index, capitalized on the misfortune in the biotech sector, surging 14.2% Monday.

Dragging on the biotech sector, Alkermes shares plummeted 22.4%. ALKS makes up 3.4% of FBT, 1.5% of XBI and 1.2% of IBB.