Biotech stocks, on balance, had a year to forget in 2022. An unsavory mix of profit-taking, clinical setbacks, a stricter Food and Drug Administration (FDA), geopolitcal unrest, rising interest rates, and good old fashioned risk aversion sent key indicators like the SPDR S&P Biotech ETF spiraling downward this year.

Hammering this point home, the SPDR S&P Biotech ETF plummeted by a staggering 53% -- from its prior three-year high -- through the first 11 months of 2022. And as a direct result of this mass exodus of capital from the space, the once-sizzling IPO market in biotech has suddenly gone ice cold. 

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Source Fool.com