Despite major innovations, large parts of the biotech industry are trading at discounted levels, with cash-rich pharmaceutical giants likely to buy up the most promising small companies.
Biotech companies have been redefining what is possible in medicine, driving major innovations in how we diagnose and treat diseases. However, a challenging macroeconomic environment has caused a dip in valuations and difficulties accessing capital, despite the industry's generally strong fundamentals and revenue outlooks. Where will the funds flow in 2023? While being selective is key to identifying long-term value in biotech, we believe historically low prices make the sector more attractive for bottom-up, fundamental investors. The ratio of enterprise value to projected sales...
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