Biotech may have had a rough start to the year, lagging many other sectors.
But don’t count it out just yet. In fact, buy all you can. The same strong catalysts and fundamentals are still firmly in place.
There are 80 million baby boomers that just started retiring. We have millions of newly insured American, new innovation, new drug demand, an older generation needing new treatment to help with costly ailments, and an M&A boom that produced more than $605 billion worth of deals in 2015 alone.
Nowadays, according to analysts, that M&A boom may be ready to get underway again. After the massive selloff in the sector, industry giants are sitting on $180 billion in cash, most ready to spend that on acquisitions, in our opinion. Potential buyers include the likes of Johnson & Johnson, Merck, Sanofi, Biogen, Eli Lily and Gilead. In fact, Gilead just spent $400 million to buy a liver disease treatment from Nimbus Therapeutics.