Biotech not yet ready for liftoff in U.S., while China surges

A handful of encouraging signals has biotech investors cautiously optimistic headed into the second half of the year, though concerns about U.S. drug pricing and FDA stability continue to weigh down expectations for a robust near-term sector recovery.

Companies with strong data are seeing share price gains and raising follow-on capital on key catalysts. M&A activity is also picking up, with buyers targeting both commercial and development-stage biotechs...