Biotech stocks are languishing close to their early 2020 bottom that they’d dropped to immediately after the onset of the Covid-19 pandemic. The sector was once considered as a better bet for those investors taking flight away from risky assets in times of uncertainty. Thus, the defensive appeal has been waning.
Food and Drug Administration (FDA) approvals, positive clinical readouts, mergers & acquisitions and more favorable government policies, are among the catalysts that can kickstart a recovery in biotech stocks.
When the turbulence, both extraneous and inherent to the sector, clears up and sanity prevails, these biotech stocks, especially the ones with a robust product lineup, promising pipeline opportunity, and strong cash position could be in for big gains.
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