Pharvaris Plummets 9.5% Amid Biotech Sector Turbulence: What's Fueling the Selloff?

Summary
• Pharvaris (PHVS) tumbles 9.48% to $23.97, its worst intraday drop since 2023
• Intraday range of $26.64 to $23.97 highlights sharp volatility
• Biotech sector news surges with Nobel Prize buzz and $96M ADC funding
• Turnover spikes to 129,032 shares, 0.49% of float

Pharvaris faces a dramatic selloff amid a biotech sector awash in both breakthroughs and turbulence. While sector peers like Amgen (AMGN) also retreat, the stock’s 9.5% decline raises urgent questions about catalysts. With biotech news ranging from Nobel laureates to gene therapy startups, investors must parse whether this is a sector-wide correction or a PHVS-specific event.

Biotech Sector Volatility Drives Sharp Decline in Pharvaris
The selloff in PHVS aligns with broader biotech sector jitters, despite a backdrop of positive news. While headlines tout Nobel Prize-winning breakthroughs and $96M in ADC funding, market participants are recalibrating for regulatory scrutiny and valuation corrections. PHVS’s -9.48% drop mirrors Amgen’s -2.69% decline, suggesting sector-wide pressure. The stock’s collapse from $26.64 to $23.97 within hours reflects a flight to safety as investors digest mixed signals: optimism over innovation clashes with concerns over pricing pressures and clinical trial risks.

Biotech Sector Mixed as Amgen Slides 2.7%
Amgen (AMGN), the sector’s bellwether, fell 2.69% on concerns over its pipeline valuation. While PHVS underperformed, other biotechs like Abivax and Vir Biotechnology gained traction on clinical data. The sector’s divergence underscores a bifurcation: innovation-driven names rally on milestones, while capital-intensive players face profit-taking. PHVS’s -9.5% drop suggests it’s being punished for perceived exposure to regulatory or commercial risks, even as peers navigate mixed fortunes.

Bearish Options and Technical Levels to Watch in Biotech’s Volatile Environment
• MACD: 0.508 (bullish divergence), Signal Line: 0.366, Histogram: 0.143 (momentum waning)
• RSI: 62.78 (neutral), Bollinger Bands: $22.83–$28.02 (price near lower band)
• 200D MA: $20.63 (price above), 30D MA: $25.62 (resistance ahead)

PHVS is testing critical support at $24.02 (30D support) and $23.75 (200D support). A break below $23.97 could trigger a test of the 52W low at $11.51. The options chain reveals two high-conviction bearish plays:

• PHVS20260116P22.5 (Put, $22.5 strike, Jan 16 expiry):
- IV: 72.76% (elevated volatility)
- Leverage: 40.03% (amplifies downside)
- Delta: -0.284 (moderate sensitivity)
- Theta: -0.0188 (slow time decay)
- Gamma: 0.1069 (responsive to price swings)
- Turnover: 7,800 (liquidity)
This contract offers asymmetric reward if PHVS gaps below $22.50, with leverage to magnify gains in a sharp drop.

• PHVS20260320P25 (Put, $25 strike, Mar 20 expiry):
- IV: 84.47% (high volatility)
- Leverage: 5.86% (modest amplification)
- Delta: -0.456 (strong sensitivity)
- Theta: -0.0159 (moderate decay)
- Gamma: 0.0431 (modest responsiveness)
- Turnover: 0 (limited liquidity)
While less liquid, this longer-dated put benefits from elevated IV and a delta that suggests meaningful payoff if PHVS remains below $25.

Payoff Estimation: At a 5% downside to $22.77, PHVS20260116P22.5 yields $0.22 (22.5 strike) while PHVS20260320P25 yields $2.23 (25 strike). Aggressive bears may prioritize the Jan 16 put for immediate leverage, while longer-term bears should monitor the March 20 contract as IV normalizes.

Backtest Pharvaris Stock Performance
The backtest of PHVS's performance after an intraday plunge of -9% from 2022 to the present shows favorable short-to-medium-term gains. The 3-Day win rate is 51.24%, the 10-Day win rate is 52.69%, and the 30-Day win rate is 56.61%, indicating a higher probability of positive returns in the immediate aftermath of the plunge. The maximum return during the backtest was 14.73% over 30 days, suggesting that while there is some volatility, PHVS can exhibit strong recovery and growth in the following weeks.

Biotech’s Crossroads: Hold for Breakouts or Exit on Weakness?
Pharvaris’s 9.5% drop has created a pivotal inflection point. While technicals suggest a potential rebound from the 200D MA at $20.63, the stock’s proximity to its 52W low and sector-wide volatility demand caution. Amgen’s -2.69% decline signals broader sector fragility, but PHVS’s underperformance hints at specific risks. Investors should monitor the $23.75–$24.10 support/resistance cluster and watch for Amgen’s next move. Action: Short-term bears target PHVS20260116P22.5 for a 5% downside play, while longer-term holders brace for a test of $20.63.