Biotech is booming, but its heights might not be sustainable
The coronavirus crisis has been a disaster for businesses around the globe, sapping consumer demand for a host of goods and services. But biotech, by any measure, is thriving.
As STAT’s Kate Sheridan reports, two major indices tracking publicly traded biotech companies have risen more than 15% since the start of the year. Private firms have raised billions of dollars in 2020, and most of the year’s IPOs have increased in value immediately after pricing.
But biotech specialists wonder whether the industry’s current pace is sustainable. Much of the market’s exuberance is based on the assumption that biopharma companies will find a multitude of answers for Covid-19, which is by no means guaranteed, and investors seem to have moved on from the threat of sweeping reforms to drug pricing, which could very well re-emerge in the presidential race.
As STAT’s Kate Sheridan reports, two major indices tracking publicly traded biotech companies have risen more than 15% since the start of the year. Private firms have raised billions of dollars in 2020, and most of the year’s IPOs have increased in value immediately after pricing.
But biotech specialists wonder whether the industry’s current pace is sustainable. Much of the market’s exuberance is based on the assumption that biopharma companies will find a multitude of answers for Covid-19, which is by no means guaranteed, and investors seem to have moved on from the threat of sweeping reforms to drug pricing, which could very well re-emerge in the presidential race.
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