Biotech stocks down on SVB fallout concerns but analysts see limited impact for now

Relay Therapeutics

10/03/2023 19:04

** Most biotech stocks drop in afternoon trade over concern
of a fallout from the failure of startup-focussed lender SVB
Financial Group  SIVB.O 
    ** Nasdaq Biotechnology index  .NBI  down 1.4%, with 252 of
271 constituent stocks down
    ** Brokerage Stifel says "SVB fallout appears limited, if
not minimal, across" its covered biotech companies
    ** "We have reached out to the respective management teams
and are reassured that the impact could be, at least for now,
less catastrophic" - Stifel
    ** Berenberg says exposure for private biotech companies
remains to be seen but most public firms in sector appear
"shielded"
    ** According to Jefferies, Relay Therapeutics'  RLAY.O  told
brokerage that 5% of co's cash is at SVB but co is in process of
moving it; RLAY shares down 6%
    ** RLAY did not immediately respond to a Reuters request for
comment
    ** Including session's loss, .NBI is down 5% in March so
far, compared to 2.8% decline in Nasdaq Composite index  .IXIC 

 (Reporting by Leroy Leo in Bengaluru)
 ((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))