Biotech sell-off continues as investors turn to safer assets amid rising inflation - reports

Out of favour

clock • 2 min read
"Tourist" investors abandoning biotech sector

"Tourist" investors abandoning biotech sector

Biotech companies that became popular with investors during the pandemic are now falling out of favour, and are increasingly struggling to raise funds, according to a report in the FT this morning (10 February).

Having raised a record $32.7bn in initial public offerings (IPOs) during the last two years, 83% of recent biotech listings are now trading at a stock price well below their IPO price, according to Refinitiv data. In fact those that listed in 2021 are trading 27% below their IPO price, while recent US-listed companies are trading at 22% below theirs. The Nasdaq Biotechnology Index fell more than a fifth since its peak in February last year, while both the Nasdaq and the S&P 500 rose 3% and 17% respectively. Biotech and healthcare investors hope for rebound following weak 2021 Ge...

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