BioCentury
ARTICLE | Finance

A maturing mid-cap sector could keep funds flowing into biotech

2021 Financial Markets Preview: Buysiders expect broad capital availability to continue following record fund-raising year 

January 15, 2021 8:58 PM UTC

While it’s too early to say whether 2020’s record year of fund-raising constitutes a “new normal,” there’s consensus among buysiders and bankers that a cheap money environment will continue in 2021 as central banks manage a fragile economic recovery, meaning biotech CFOs shouldn’t have trouble tapping the public markets. 

Some investors are wary of how long biotech’s run-up can continue, but others argue its upward trajectory is long overdue, and that a growing universe of mid-cap biotechs that offer more liquidity and revenue stories to pick from should translate into a sector that is more broadly attractive to investors than it was even five years ago. ...