On Wall Street, there's trouble stirring for biotech

Many investors are losing money in what, on the surface, still seems like a positive year

By Adam Feuerstein

Oct. 15, 2026

Biotech investors initially felt optimistic about the year's performance. However, following the conclusion of summer, a prevailing sense of discontent has emerged.

Currently, the XBI is up 24%, despite a decline of 11% from its August peak. While this retraction may not seem overly concerning when compared to the severe downturn experienced by the biotech sector in early 2025, the underlying cause for investor dissatisfaction is rooted in factors that extend beyond the XBI's overall performance.

This story first appeared in Adam's Biotech Scorecard, a STAT newsletter.