Home Finance Big Pharma Won’t Bail Out Battered Biotech

Big Pharma Won’t Bail Out Battered Biotech

by Enochadmin

The inventory market is likely to be within the doldrums, however the biotechnology index has fallen off a cliff. One measure says all of it: Dozens of publicly traded biotechs have dropped a lot that they’re now valued beneath the amount of money they’ve within the financial institution.

Some healthcare traders have been pointing to that development as an indication issues have began to backside. The argument goes that biotech has develop into so low-cost that large pharma—staring down a patent cliff and armed with a whole lot of billions of {dollars} of dry powder for acquisitions—will come to the rescue. Certainly, a well-liked biotech exchange-traded fund, the SPDR S&P Biotech ETF, has rebounded by round 20% from its current lows.

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