Biotech investors aren't used to seeing shares of their favorite companies tumble, but that's exactly what's been happening so far this year. The iShares Nasdaq Biotech Index, the ETF that tracks the performance of this sector, has started to rebound in recent days. However, the index is down almost 4% year to date.
To gain more insight into why this sector is underperforming the broader market this year, and reasons why big pharma company Sanofi (NYSE: SNY ) could be one way long-term investors may get exposure to this sector, analysts Matt Koppenheffer and Max Macaluso discuss the recent tailwinds that drove up biotech stocks in 2013, and the headwinds that the industry is now facing. The video below, from The Motley Fool's show Where the Money Is, also covers the reasons behind big biotech Gilead's recent poor performance, and challenges that the company is currently facing.
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