Finance Watch: Karuna, Cerevel And Others Benefit From Improving Biotech Sentiment

The biopharmaceutical industry showed in multiple ways during the second week of August how a rising tide lifts all ships. Signs that the US may be able to avoid a recession – low unemployment rates and stabilizing inflation – improved investor sentiment overall and good biopharma news in the form of multibillion-dollar deals and positive data readouts helped lift valuations across the industry.

August’s second week began with Pfizer Inc.’s planned $5.4bn purchase of Global Blood Therapeutics, Inc., strengthening investors’ faith that their biotechnology holdings may still generate big returns through big pharma buyouts. (Also see "Pfizer’s Buying Spree Continues With GBT, Gaining A Sickle Cell Disease Franchise" - Scrip, 8 August, 2022.) The week also started with a positive readout on 8 August from a closely watched Phase III clinical trial – Karuna Therapeutics, Inc