2Q21 Preview: Looking for signals of financing slowdown

The first quarter of 2021 saw a disconnect emerge between market performance and financing activity. While biotech financings set first quarter records across IPOs, follow-ons and venture, sector indexes underperformed the broader markets as the recovery trade continued to see generalists rotate into cyclical sectors.

Heading into 2Q21, the “wall of worry” for investors includes concerns around FDA, a more aggressive FTC, rising interest rates, clinical and regulatory setbacks and drug pricing. ...