Biotechnology stocks have the potential to deliver outstanding returns for investors. Indeed, some of the best-performing stocks in the past two decades have emerged from the biotech industry.
However, this group of stocks also comes with a high degree of risk and volatility. The fiercely competitive nature of the industry and the limited lifespan of branded medications can cause significant fluctuations in the stock prices of biotech companies.
(NASDAQ: MRNA), a leader in the field of messenger RNA (mRNA)-based vaccines and therapeutics, is a prime example. The company's stock price skyrocketed in 2021, thanks to the strong sales of its COVID-19 vaccine, SpikeVax. However, the stock has since plunged by more than 77% from its peak, as the demand for COVID-19 vaccines has declined.
Source Fool.com