DHR - The Correction In Biopharmaceutical Stocks Is Likely Over

• Biopharmaceutical stocks have undergone a dramatic correction over the past six months, with the XBI declining by 45%.
• The decline was appropriate, given the number of companies that went public in 2021 with preclinical data and a valuation exceeding $1 billion.
• Not only would these companies not be on the market before 2027, but the cash burn suggested that additional financing would be needed.
• With stocks across all of healthcare, with the exception of large-cap pharmaceuticals, dramatically lower, there are stocks attractively priced.
• Additionally, with the stock declines, analysts are lowering price targets (which had been too high), creating, in my opinion, additional selling pressure. The short interest is high in many stocks.

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