At one time, the biotechs ruled as the market leader, impermeable to low oil prices. But those tides have changed, and Jim Cramer warns that those holdovers could be lurking in your portfolio, ready to cause immense damage.
On Monday the market experienced a dramatic change, when the biotech sector was badly beaten. The change mostly happened on the downfall of Gilead's Hepatitis C monopoly, thanks to Express Scripts selecting competitor AbbVie as its treatment supplier. As a result, Gilead has fallen to $88 from $108 in two days.
It is the umbrella effect of Gilead's beat down that really worries Cramer though. "The notion that the biotechs, as a group, may not have the pricing power we thought they did, and ruinous competition could be lurking around every corner."