Biotech is riding high and cashing in
Despite escalating fears of an economic collapse, biotech stocks are doing great at the moment, with the closely watched XBI index hitting its high for the year. And for cash-burning companies facing an uncertain market future, that means now’s the time to raise funds.
No fewer than eight biotech companies mounted stock offerings yesterday, led by Moderna and its pitch to raise more than $1.2 billion. Bluebird Bio, Krystal Biotech, Gossamer Bio, Gamida Cell, Bellerophon Therapeutics, Turning Point Therapeutics, and Clovis Oncology completed the list. Combined, they’re seeking to raise more than $2 billion.
The timing might end up looking wise. Biotech crashed, along with the rest of the market, back in March when the novel coronavirus looked poised to halt the global economy. The sector is up about 60% since March 16 thanks largely to positive headlines from Gilead Sciences, Moderna, and other companies working on medicines for Covid-19. But with sentiment that fickle, any setbacks in the search for new treatments could put biotech back where it started — and make raising money a much more complicated matter.
No fewer than eight biotech companies mounted stock offerings yesterday, led by Moderna and its pitch to raise more than $1.2 billion. Bluebird Bio, Krystal Biotech, Gossamer Bio, Gamida Cell, Bellerophon Therapeutics, Turning Point Therapeutics, and Clovis Oncology completed the list. Combined, they’re seeking to raise more than $2 billion.
The timing might end up looking wise. Biotech crashed, along with the rest of the market, back in March when the novel coronavirus looked poised to halt the global economy. The sector is up about 60% since March 16 thanks largely to positive headlines from Gilead Sciences, Moderna, and other companies working on medicines for Covid-19. But with sentiment that fickle, any setbacks in the search for new treatments could put biotech back where it started — and make raising money a much more complicated matter.
More reads
- Biotech companies prepare for COVID-19 downturn. (Nature Biotechnology)
- Jesus Christ was also misunderstood, Masayoshi Son tells investors. (Financial Times)
- The rogue experimenters. (New Yorker)
- Alexion becomes latest company to face pressure to sell from activist investor. (Boston Globe)
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