The Nasdaq Biotech Index lost $85 billion this week in its worst drop in a year as funds saw the most money flow out of the sector since last March.

The benchmark for biotechnology stocks is on track to close out its third weekly loss in a row.

President Joe Biden said this week that the U.S. should have enough Covid-19 vaccines for every adult by May. While investors weigh the need for more medicines and vaccines to address the pandemic, they are using last year’s profits to snap up shares in some of 2020’s more beaten-down industries like banks, travel and leisure. Rising interest rates have also hurt the growth-oriented biotech sector.

Biotech stocks are having their worst week since last March

In the weekly period that ended March 3, $569 million exited the 127 biotech mutual and exchange-traded funds tracked by Piper Sandler’s Christopher Raymond. Still, with fund flows still positive for the year, “it’s too soon to sound the alarm, he said in an interview.

“There are moments when there is a very fundamental policy shift, like drug pricing that makes a generalist investor want to shy away from biotech and we haven’t seen any of that yet,” Raymond said. Biden hasn’t gone after the sector with the harsh rhetoric of the prior administration, he said.

ETF Outflows

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