- The biotechnology sector largely underperformed the broader market this year, particularly small- to mid-cap biotech indexes whose constituents tend to experience more volatility.
- Contributing factors to the market decline include fears of increased regulation and oversight of M&A transactions and drug prices against the backdrop of interim leadership at the FDA.
- November, however, brought several developments which may suggest that these concerns could be alleviating, along with news of a nomination for FDA chief.
- If broader markets remain steady and the broader biotechnology sector recovers, small- to mid-cap biotech indexes could see higher return potential relative to their large-cap counterparts given their weakness in 2021.
For further details see:
A Healthy Dose Of Good News For SMID-Cap Biotech Indexes