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.
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.