4 Stocks That are Heading in Opposite Directions Today

The biotech sector is taking a beating today, as the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) is off by 4.5%. Because many biotech companies aren’t profitable or cash flow positive and depend on the public market for maintenance capital, their equity values are particularly susceptible to ‘risk off’ sentiment shifts. Given the recent increased volatility in the broader market, and the uncertainty of drug pricing regulation if Hillary Clinton should win the Presidency this year, many investors are cutting their exposure to the sector just in case things get worse.

Not surprisingly, Radius Health Inc (NASDAQ:RDUS), a biopharmaceutical company focused on developing new therapeutics for patients with osteoporosis as well as other serious endocrine-mediated diseases, and Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH), a clinical-stage biopharmaceutical company focused on creating new antibiotics for serious and life-threatening multidrug-resistant (MDR) infections, are off by 17% and 14.5% respectively on the back of the negative sentiment. Hedge fund sentiment towards Radius Health Inc (NASDAQ:RDUS) has been stable, with the number of elite funds owning the stock remaining unchanged at 23 as of the end of the third quarter. Meanwhile, 15 elite funds owned shares of Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) as of that period, down by six from the end of the second quarter.

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