Biotech's blue shift

The biotech downdraft is having an ugly side effect outside of losing investors a lot of money: It's drastically reducing the number of "investable" biotech companies.

Wall Street typically considers any company with a market capitalization of less than $1 billion to be small cap, and many mutual funds have charters that keep them out of that space. As biotech valuations accelerated during the red shift of the genomics bubble, many companies crossed the $1 billion threshold, and thus found themselves attractive to a whole new group of investors. With market caps now falling back from the outer reaches of the galaxy, biotech risks losing access to many of those new investors...