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Stock Watch: Wrap Up For The Biotech Winter

A Recovery In Biotech Stocks Has Many False Dawns

 
• By Andy Smith

A drastic risk-off pullback in the public market can close an IPO window while private biotechs aspiring for either a public debut or an acquisition by big pharma may be stymied by their stale valuations.

Stock Watch Image, Andy Smith
ANDY SMITH OFFERS A LIFE SCIENCE INVESTOR'S PERSPECTIVE ON BIOPHARMA BUSINESS

In the year to date the NASDAQ Biotech Index (NBI) has fallen by nearly 14% compared to the less risky NYSE Arca Pharmaceutical Index’s (DRG’s) fall by nearly 7%. But early August brought a wave of optimism to the biotech sector with social media commentators lauding the NBI’s rise by 22% from its mid-June lows. Meanwhile, despite reasonable second-quarter earnings the DRG could barely manage a recovery into positive territory from the same time point.

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• By Andy Smith

The end of the American College of Cardiology conference was a prelude to a volatile trading week for most stocks. Even before Liberation Day, reactions to the conference announcements were not encouraging.

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China’s Biotech Stocks Proved More Resilient Than US’s Amid Market Turmoil

 
• By Andrew McConaghie, Edwin Elmhirst, and Dexter Jie Yan

Start-ups from China dominated the fastest-growing share prices for mid-cap biopharma companies in Q1, while the biggest decliners were mainly US firms.

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• By Sushmita Panda

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Finance Watch: Biopharma Sees An Early April VC Mega-Round Surge

 
• By Mandy Jackson

Private Company Edition: After Q1 venture capital investment slumped relative to 2024 totals due to declines in both smaller financings and mega-rounds, Q2 started off with six $100m-plus financings in the first half of April after there were only three in February and six in all off March.