Biotech finally has a pulse.
The improving appetite for risk has resuscitated the moribund biotechs and pharma (biopharma) groups. The Nasdaq Biotech (IBB) and the S&P Biotech (XBI) indexes have begun their advance from their year-to-date lows recorded earlier in October. The sector dynamics have not shifted meaningfully and the overarching risk of regulation persists. But with the growing market shift towards embracing risk, the biotechs will rise with the broader market, and there is a window of opportunity for meaningful gains, as strongly highlighted in the earlier article