And biotechnology companies have "massively outperformed" this year, whereas pharmaceutical firms have not, International Strategy & Investment analyst Mark Schoenebaum said in a research note. "Are we in a biotech bubble right now? The consensus view is yes, we are," Schoenebaum said, citing a recent informal survey of his clients. "But we're only in the second or third inning and have several quarters of good performance ahead of us."
The fundamentals of biotech look good. There's lots of growth and generally any licensing deal offers three to five years of future milestones. As long as productivity is up, there's no problem, Schoenebaum said.
After all, we're not talking tulips here. These firms generally have years of experience, both managerial and scientific, with solid hypotheses and some proof-of-concept data before they go public.
"There are window periods and often
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