Special double issue: Two faces of the biotech rally

It doesn’t take a Ph.D. to figure out that once a few blockbuster offerings got done in early August, companies in need of capital and bankers equally hungry for fees would rush into the gap to try their luck at raising money in the public equity market.

Now it boils down to a race to move all that paper before the stock market rally peters out and the momentum investors who are buying the deals move on to greener pastures. Alternatively, the rally could continue as the senior companies continue a flow of good news, but as more marginal companies try to raise money, their stocks won’t move in a positive direction that will keep the momentum investors in the game. ...