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Posted On: 10/20/2022 9:48:28 AM
Post# of 27137
$NBIO Oct 05, 2022 (WallStreetPR via Comtex) -- The Biotechnology space has been hammered this year along with growth technology stocks as fund managers follow the historical playbook on rising rates - higher risk-free returns from fixed income instruments pulls investor duration forward, which means money flows from stocks that have a great long-term story but aren't really producing much cash from operations to value stocks, which have big cash flows already coming in the door.
Biotechnology companies with early-stage pipelines - ie, nothing past Phase 2 trial research - are basically ground zero for a growth-stock thumping in any sudden transition from a persistent low-rate environment to a higher rate context.
That's exactly what we have seen so far this year. And small-cap, early-stage biotechnology stocks have been brutalized en masse in the process. But that tide may be starting to turn. Shares in Focus as Biotech Leads Growth Rebound https://www.marketwatch.com/press-release/nbi...re_twitter
Biotechnology companies with early-stage pipelines - ie, nothing past Phase 2 trial research - are basically ground zero for a growth-stock thumping in any sudden transition from a persistent low-rate environment to a higher rate context.
That's exactly what we have seen so far this year. And small-cap, early-stage biotechnology stocks have been brutalized en masse in the process. But that tide may be starting to turn. Shares in Focus as Biotech Leads Growth Rebound https://www.marketwatch.com/press-release/nbi...re_twitter
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