The bubble bursts for biotech stocks

It’s official: the biotech bull market is over. And a new analysis by Evaluate Vantage, looking at share price gains in response to clinical data, shows just how much the bubble has deflated in recent months.

True, the market had witnessed periods of excessive buoyancy in recent years, when huge share price surges were seen in response to very early or questionable results. But so far the second half of 2021 has underperformed all the other time points in the past five years. With fears about inflation growing, conditions are unlikely to get better any time soon for small developers.