Biotech stocks have been dropping in value since early February, likely depressed by some regulatory and drug pricing concerns, but some analysts think the sector will rebound later this year, partly on the back of M&A deals and new product releases.... [+]
in San Diego, California, U.S., on Friday, March 27, 2020. Mesa Biotech's Accula SARS-CoV-2 Test, which gives diagnostic results in 30 minutes, has received emergency approval from the U.S. Food and Drug Administration as a result of the novel coronavirus outbreak. Photographer: Bing Guan/BloombergAfter surging 48.3% in 2020, the SPDR S&P Biotech Exchange Traded Fund has been skidding this year – since peaking on Feb.
David Nierengarten, a biotech and biopharmaceuticals analyst at Wedbush Securities in Los Angeles, toldthat concerns over stalled new drug approvals by the Food and Drug Administration are likely weighing on the biotech sector. Nierengarten also said a plan by the Federal Trade Commission to scrutinize biotech and pharma mergers over anti-competitive issues is also weighing on biotech stocks.
Some biotech investors are also concerned about new legislation proposed by Sen. Bernie Sanders that would lower drug prices.said it would form a working group with its overseas counterparts to more closely examine mergers in the biotech-pharma industries in order to assess their potential impact on competition – a move that could make it harder for industry mergers to go through,'s planned $7.1 billion acquisition of Grail, a company developing an early stage cancer-detection test.
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Source: Forbes - 🏆 394. / 53 Read more »
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