Biotech stocks following tech stocks out of favor.

When Rosetta Inpharmatics Inc. went public last August, it was clear the biotech industry had resurfaced as a once-again viable industry after years of poor performance.

The downturn in the public markets, however, has made industry experts less sanguine about the sector's prospects than they were at the height of the stock market euphoria last year.

While many insiders remain bullish on biotech's long-term opportunities, at least one prominent venture capitalist foresees a drop-off in the amount of money going into the sector until the Nasdaq National Market stabilizes, at least in the short term.

In addition to Rosetta's initial public offering, a …