Why Adaptimmune Therapeutics, Atreca, and CRISPR Therapeutics All Tanked In March
March wasn't kind to any asset class because of the COVID-19 pandemic. But the month took a particularly heavy toll on risky clinical-stage biotech stocks. Shares of Adaptimmune Therapeutics (NASDAQ: ADAP), Atreca (NASDAQ: BCEL), and CRISPR Therapeutics (NASDAQ: CRSP), for instance, each fell by more than 20% last month, according to data from S&P Global Market Intelligence.
Why did clinical-stage biotech stocks tank last month? Companies like Adaptimmune, Atreca, and even CRISPR are heavily dependent on secondary stock offerings to raise capital for their costly clinical activities. What's more, these types of companies are essentially a science experiment, which entails a whole lot of risk.
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