Biotechs are spend­ing record sums on R&D — should that wor­ry you at least a lit­tle?

The po­lit­i­cal and eco­nom­ic tem­blors that have been rat­tling the land­scape in Wash­ing­ton DC has some an­a­lysts pon­der­ing what a se­ri­ous mar­ket cor­rec­tion would look like among the small, mid-cap biotechs out there that have been spend­ing mon­ey on R&D at record lev­els. Along those lines, Jef­feries’ pro­lif­ic an­a­lyst Michael Yee start­ed out the day with a note on the 10% slip­page in the $XBI over the last 3 months, won­der­ing if the drop in share prices could be linked to Eliz­a­beth War­ren’s ris­ing poll num­bers. 

War­ren has grabbed at­ten­tion for her sug­ges­tion that the feds could start man­u­fac­tur­ing drugs when the cost is too high on the com­mer­cial side. And the bears could get re­al­ly restive if the en­vi­ron­ment on Wall Street starts to look bleak on the fundrais­ing side.

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