Investor Outlook: After the Biotech Bubble Popped

Abstract

After a few torrid years of value appreciation, the biotech “bubble” has precipitously popped over the past few months. In this report, we take a look at some of the factors that drove the run-up in valuations, the triggers that led to their substantial pullback, and where the industry may be headed from here. Gene therapy/editing companies have been particularly affected by these dynamics, raising a new set of questions and challenges for the group.