Despite soaring stock prices and a few breakthrough new therapies, biotech can’t seem to keep investors enthralled. The flow of money into the sector has turned negative for 2017, marking the second straight year that Wall Street has pulled more cash out of biotech than it has put in.
According to the investment bank Raymond James, biotech is down $59 million on the year. And it could have been worse: If not for one massive week of inflows in June, biotech would be down more than $1.5 billion in 2017, according to Baird analyst Brian Skorney. That’s not as bad as 2016, when roughly $6.5 billion left the sector, but it marks an alarming trend.