FT News Briefing Biotech is back
Feb 26, 2024
Israel's ambitious plans to raise $60 billion in debt come amid escalating defense spending due to ongoing conflict. Meanwhile, the U.S. biotech sector experiences a revival, driven by renewed investor enthusiasm and successful COVID-19 vaccine developments. Global house prices show a surprising rebound, reflecting varied economic trends across advanced economies. The EU faces challenges with its pandemic recovery fund, raising questions about its effectiveness in promoting sustainable growth as disputes hinder crucial renewable energy projects.
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Biotech Funding Boom
- U.S. biotech companies are raising funds at the fastest rate since the pandemic boom.
- This ends a two-year drought, allowing them to restart projects and hire.
Biotech's Pandemic Cycle
- The pandemic-era biotech boom was fueled by low interest rates and rapid vaccine development.
- The subsequent downturn was driven by rising interest rates and unmet investment expectations.
Renewed Biotech Interest
- Renewed interest in biotech is linked to stabilizing interest rates and successful drug developments and acquisitions.
- Big pharma acquisitions create a ripple effect, as specialized investors reinvest profits within the sector.