Biotech Needs a Shot in the Arm

It has been somewhat frustrating to be a biotech investor over the past two years, as the sector is still down over 25% from its last peak in July of 2015. While the main biotech indices continue to trade in a narrow range, as they have through most of the year so far, investors have had to watch the S&P hit new highs almost on a daily basis and the Nasdaq rise almost 20% this year.

The dearth of M&A activity across the sector continues to be a significant headwind. This part of the market got off to encouraging start to the year, with three deals over $5 billion announced in the first five weeks of the year, but it has been basically crickets since. Until we get clarity on what, if any, sort of tax reform has a chance of passing in a very divided congress, I think the pharma and drug giants will continue to sit on their hands....377 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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