Hopeful Signs Emerging for the Biotechnology Industry
The biotechnology and pharmaceutical industries have positively impacted the lives of billions of people over the past few years with the rapid development of therapeutics and vaccines for Covid-19. However, the biotechnology industry, which is generally credited with driving the most cutting-edge innovation, has underperformed the broader stock market over the past few years. Performance aside, hopeful signs are emerging thanks to more clarity on which drugs may be impacted by future anticipated price controls stemming from the recent passage of the Inflation Reduction Act, a robust pipeline of promising medicines and therapeutics, and a surprisingly resilient track record for the industry during periods of economic weakness. In our view, biotechnology is uniquely positioned to provide exposure to important innovations whose value may not be well reflected in equity prices today.
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Posted on Tuesday, October 25, 2022 @ 11:43 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.