I took the decision recently to take profits from much of my exposure to biotech companies in the exchange-traded funds that are based on the NASDAQ Biotech Index (NBI). When I made these investments a few years ago the NBI was about 30% below its last peak in August 2021. I had hoped that the stock prices of the sector’s companies would rally more as the cumulative positives of the NBI’s constituents being acquired by big pharma companies and their clinical and regulatory successes were all recognized.
Stock Watch: Biotechs Sell The Family Silver
But Are They Just Delaying The Inevitable?
When loss-making biotech companies mix debt with sluggish sales, difficult options like restructuring and asset sales remain.
