Health Care Down as Earnings, Risk Aversion Hurt Biotech -- Health Care Roundup

Shares of health-care companies fell sharply as disappointing earnings and a flight from risk weighed on biotechnology issues. The iShares Nasdaq Biotech Index exchange-traded fund, a basket of biotech stocks, fell by 4% and is down more than 10% since its peak in January. Drug makers including Eli Lilly, have warned that they may have difficulty raising prices, something that's of particular concern to biotech companies whose products are often sold for very high margins. There's also a growing concern among biotech investors that "biosimilars," or generic versions of treatments, will soon pose a threat to the most lucrative franchises. Shares of Amgen fell by roughly 5%. Late last week, the biotech giant's quarterly earnings were short of some investors' expectations, reflecting relatively weak demand for some of its newer treatments.

-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

February 05, 2018 16:51 ET (21:51 GMT)

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