ARTICLE | Finance

Volatile, not futile

Biotech turned red in 3Q15 but bankers, buysiders say it's the lone growth sector

October 5, 2015 7:00 AM UTC

Bankers and buysiders are not ready to call the end of the biotech bull on the heels of the sector's worst quarter in more than 13 years. But they do expect volatility to persist through late next year because drug pricing is on the radar of generalist investors and the public, and likely will remain an issue through next year's presidential election in the U.S.

Even so, many buysiders and VCs think companies developing novel drugs will be insulated from any long-term effect, and that pricing will be factored into valuations only during sporadic bursts...