RETA - Citing uncertainty Baird stays neutral on Biotech for 2021

Heading into 2021, Baird keeps a neutral view on Biotechnology despite higher expectations after the sector with a 26% gain in the iShares Nasdaq Biotechnology ETF (IBB) outperformed in 2020 compared to the 16% in the SPDR S&P 500 Trust ETF (SPY). The outlook is underpinned by uncertainty with the new-look administration in Washington and the COVID-19 vaccination cited as reasons.The analysts argue that the worst of COVID-19 has yet to come and the new administration will likely accelerate the vaccination rollout to make a meaningful subset of the populace immune. They expect a strong uptake for Vekulry from Gilead (GILD) continuing ‘in the early part of next year,’ despite the underutilization of monoclonal antibodies in the healthcare system.The top picks include Sarepta (SRPT), BioMarin (BMRN), Reata (RETA), Apellis (APLS), and Intellia (NTLA) due to upcoming data reads and approvals to validate the potential of expanded pipeline; Albireo (ALBO) and

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Citing uncertainty, Baird stays neutral on Biotech for 2021