Re: We got a butt kicking today..
If the S&P or Nasdaq fell 46% it would be called a crash. The XBI has crashed. My experience is that when something crashes, it nearly always gets worse before getting better.
Usually there is a good reason for a crash. 2021 was a record year for new product FDA approvals, however.
There were also huge advances in cancer, rare diseases, mRNA vaccines and therapies, as well gene therapy and editing, etc.
And of course there is this - from PharmaExec Magazine;
Given the strong results for the leading companies in the sector, cash is continuing to flow into already full coffers. The largest 12 biopharma companies have dry powder approaching $200 billion, in other words, cash and borrowing power to fund M&A—which, by the way, remains core to the largest companies’ growth strategies by their own admission.
How does that line go? It’s always darkest before the dawn? I can say pretty positively that nobody who has read any of my posts expected me to say something like “oh no, we are screwed!!!!”
The thing is, that’s what I would say if there was reason to.