1. Scrip
  2. >>Business
  3. >>Stock Watch

Stock Watch: Exploring Biotech’s Route Through Bubble And Wilderness

A Biotech Recovery May Be Some Way Off

 
• By Andy Smith

Biotech has always been a volatile sector, and it is important for investors to recognize the phases its stocks go through. In particular, the journey through the post-bubble wilderness can be a protracted affair.

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

In a recent discussion, I used the phrase “biotech wilderness periods” to describe the times of investor malaise around the sector, which result in its stock indices remaining range-bound. When I joined the fund management industry in the summer of 2000, it was just in time for a broad and lasting market sell-off that included biotech. The NASDAQ Biotech Index (NBI) had already started the retrenchment from its February 2000 high that was reached after publication of the first complete human genome DNA sequence drove hopes of a new era of drug development.

Since its inception in November 1993 the NBI has generated more than twice the return of the broad S&P500 index (SPX), but it has been much more volatile. That retrenchment...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Stock Watch

Stock Watch: Q1 Sales Trends And Forex Muddle Pharma Outlook

 
• By Andy Smith

Pharma firms tended to downplay first-quarter trends in full-year guidance. However, raised guidance seems fragile amid ongoing foreign exchange effects and Medicare Part D redesign pressures.

Stock Watch: Bayer, Bavarian Nordic Bring European Cheer To Pharma

 
• By Andy Smith

Investors welcomed Bavarian Nordic’s and Bayer’s earnings announcements. However, both stock prices declined over the day of their reports as the impact of recent pressures weighed.

Stock Watch: Stock Watch: Lilly And Novo Duke Out Q1

 
• By Andy Smith

Novo Nordisk enjoyed a surprise GLP-1 agonist contracting win in the first quarter of 2025. This provided a welcome boost to its stock after it had spent the previous quarter on the back foot against rival Lilly.

Stock Watch: Market Optimism Outshines Q1 Currency And Tariff Woes

 
• By Andy Smith

The weak US dollar helped some companies reporting first-quarter results and hindered others reporting in stronger currencies. But even the impacts of currencies and Medicare modernization on first-quarter revenues were overlooked when an end to the trade wars seemed possible.

More from Business

Lilly To Diversify Pain Pipeline With SiteOne Acquisition

 
• By Joseph Haas

Deal snapshot: With several internal non-opioid pain candidates in Phase II or earlier, Lilly looks to add R&D potential in pain with $1bn buyout of SiteOne.

Angelini Advances Brain Health Ambitions With GRIN Pact

 
• By Kevin Grogan

The Italian drugmaker gets rights to Phase III-ready asset radiprodil.

GlycoEra’s Series B Cash Will Fund Efforts To Take On FcRn Inhibitor Class

 
• By Joseph Haas

GlycoEra unveiled a $130m series B financing, saying the proceeds would enable it to take its first clinical candidate through proof-of-concept in autoimmune diseases.