But industry analysts say the stocks may finally be approaching a bottom. It's hard to pick an exact bottom. But I would have to say, at this point, we are definitely very close to a bottom. Most analysts agree that many biotech and medical device company stocks were overvalued in the past year. Today, most valuations are more in line with a company's true worth, Berry said.
Many companies are in good financial shape, and more and more drugs are being approved.
In general, the drops in biotech and medical device stocks have followed the trends of the Nasdaq stock exchange. At its lowest point last week, the Nasdaq was 28 percent below its Jan. 2 closing. They are largely down about 30 percent this year. But those companies that have had disappointing news in conjunction with the overall decline have suffered most. Seattle-based Immunex Corp.'s stock fell nearly 70 percent below its Jan. 2 price after the company announced it was ending trials of Enbrel to treat chronic heart failure, and said its Nuvance product had little positive effect for asthma patients, on Mar 22.