Underperforming biotechs set for resurgence

Concentrating on US healthcare reform has led many analysts to overlook other positives in the biotechnology sector

For the past year, debate about biotech investment has been dominated by concerns over US healthcare reform, particularly given that a large proportion of the global biotech industry is based in the US. The point missed by many commentators is that reform is likely to be a net positive for biotech. Going forward, there are several secular reasons why biotech investments should perform well, including growing demand and merger and acquisition (M&A) activity. At the time of writing, the US healthcare reform bill was undergoing final revisions. Because of the uncertainty surrounding the ter...