Biotech stocks like Recursion, Summit, and CRISPR plunge on FDA leadership changes and vaccine safety concerns

From Nasdaq: 2025-03-31 15:25:00

Shares of biotechnology stocks like Recursion Pharmaceuticals (NASDAQ: RXRX), Summit Therapeutics (NASDAQ: SMMT), and CRISPR Therapeutics AG (NASDAQ: CRSP) plunged on Monday, with losses of 9.4%, 5.6%, and 9.2%, respectively. These companies are early-stage biotechs focused on next-generation therapeutics but currently have low revenue and no profit. The market downturn was exacerbated by a key FDA regulator, Dr. Peter Marks, resigning in protest over concerns about vaccine safety and FDA leadership changes. This uncertainty could impact the approval process for innovative therapies in the future, affecting revenue projections and potentially leading to more shareholder dilution.

The resignation of Dr. Peter Marks, a key FDA regulator, has raised concerns about the approval process for innovative therapies. Recursion Pharmaceuticals, Summit Therapeutics, and CRISPR Therapeutics are at risk due to potential delays in drug approvals and the need for more funding for research. These companies, which are not profitable, rely on FDA approval for their novel treatments. The departure of Dr. Marks adds uncertainty to their future prospects and could impact their ability to bring new therapies to market efficiently.

Investors are advised to remain cautious as uncertainty looms over the biotech sector due to FDA leadership changes and potential delays in drug approvals. The future of companies like Recursion Pharmaceuticals, Summit Therapeutics, and CRISPR Therapeutics hinges on regulatory decisions and funding availability for their research. The market volatility following Dr. Marks’ resignation highlights the importance of staying informed and monitoring developments in the biotechnology industry.



Read more at Nasdaq: Why Biotech Stocks Like Recursion Pharmaceuticals, CRISPR Therapeutics, and Summit Therapeutics Plunged Today