Following a blockbuster year of dealmaking and a recent uptick in biotech stocks, top investors see more good news on the horizon.
Driving the momentum? Economics 101.
Biotechs rely on borrowing capital, which is a more tenuous task when interest rates are high. But interest rates have most likely peaked, with Federal Reserve officials signaling earlier this week they expected to make three cuts this year. For public biotechnology startups that have been battered by the market in recent years, this is a very good thing, Rod Nathan, portfolio manager and partner of J. Goldman & Co., said on a panel at STAT’s Breakthrough Summit East in New York on Thursday.