The biotech sector, as measured by the XBI ETF, traded lower in the pre-market session following disappointing news from several companies. Eli Lilly announced it was ending its collaboration with Foghorn Therapeutics on a cancer drug, leading to a significant workforce reduction at Foghorn. Additionally, Nektar Therapeutics reported disappointing long-term data for its treatment for alopecia and atopic dermatitis, causing its stock to drop significantly. Shares of Regeneron also fell after the terms of an expanded alliance with Sanofi disappointed investors. These developments have created negative sentiment across the industry.