Biotech Sector Snapshot
Long Only, Biotech
Seeking Alpha Analyst Since 2009
Founder of 500+ member ROTY Biotech Community (try the 2-week free trial to see if it adds value for you). Quality over quantity- enjoy connecting with readers.
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Thoughts
Easier returns came in 2019 and 2020 (XBI up 32% and 48%).
With record levels of investment in biotech sector last year, wouldn't be surprised to see consolidation in current range for a while and increased volatility.
In the event of a correction, we've observed that companies with strongest near term clinical momentum and catalyst pipeline are often the ones to bounce back quickest when the smoke clears.
High degree of derisking (via POC data sets, straightforward MOA, multiple irons in the fire, lucrative partnerships, etc) is imperative to avoid big binary losses that are hard to come back from.
Stick to highest conviction setups, avoid mediocre ideas or trading just for the sake of doing something. Cash is our friend, to hold and wait patiently for optimal situations where risk/reward heavily slanted in your favor.
Just my two cents as always.
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