The rebound follows “the most extreme period of stress in the modern history of biotech,” with only the global financial crisis even comparable, Leone told Bloomberg. “The risk-reward for the sector is highly skewed to the upside.”
Other analysts are also recommending investors to buy the dip, especially those that have taken the brunt of the selling. JPMorgan Chase & Co.’s top strategist, Marko Kolanovic, argued for picking up risky assets in beaten-down sectors like biotech.
“Current share prices do not reflect the true value of many exceptional businesses that are driving a paradigm shift in the industry,” Julia Angeles, who co-manages $71 billion at Baillie Gifford, told Bloomberg. “We are moving to a world where drugs in the future will be more specific, biology becomes engineer-able, and where personalized medicine becomes a reality.”
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