- Biotech stocks had a muted first half with the S&P Biotech Index down year-to-date, and more than 20% lower from its mid-February peak.
- The decline in biotech stocks coincided with a spike in interest rates and stabilizing interest rates can provide a boost to valuations.
- M&A has been dormant but conditions exist for a much busier second half.
- Neurology, particularly treatments for Alzheimer's and Parkinson's diseases, garnered strong investor interest after approval of Biogen's drug, and the upcoming industry conference can be a catalyst for powerful moves.
- Portfolio exposure to biotech stocks can be much more rewarding in the second half.
For further details see:
Biotech Bonanza: Promising Second Half Outlook