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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