As of yesterday, the XBI biotech index has not only reversed last month’s slump but reached the full-year high it set in April. And that’s despite the fact that drug pricing rhetoric has hardly subsided, and next year’s presidential election remains as unpredictable as ever.
One potential (and potentially simplistic) explanation: Drugs have been working lately. The likes of Karuna Therapeutics, Myovant, Constellation Pharmaceuticals, and NextCure have all had positive data in recent weeks. And while some of the individual stock reactions might not age well, the cumulative effect has perhaps reminded generalists that there is quite often a lot of money to be made in biotech.
