EIGR - Biopharmaceutical Stocks: The Bottoming Process Is Playing Out

• Three weeks ago, I suggested that the severe correction in biopharmaceutical stocks had ended. I expect the bottoming process to be choppy with a bias to the upside.
• The antecedent cause of the decline was the "Class of 2021 IPOs", which featured many companies with preclinical compounds, yet valuations exceeded $1 billion.
• This group of companies would not have a commercial product before 2027, suggesting they would require additional funding. With excessive market capitalizations, the equity window was not open.
• I maintain that there are many stocks that are very attractive at the current time. I find investor sentiment negative and short interests high.

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