Source: Fierce Biotech
By: Maureen Martino
Investors see small biotech as a smart investment for a number of reasons. The much talked-about weak pipelines at Big Pharma companies are good news for small biotechs. Now more than ever pharma is looking to small developers to fill the gap. Take, for instance, Roche's massive $43.7 billion offer for Genentech, or BMS's smaller but still impressive $4.3 billion bid for ImClone. These deals bolster the sectors as a whole, as investors anticipate similar mergers and pacts with other biotech companies.
The potential for big deals isn't the only reason biotech makes for a good investment these days. Drugs--and the companies who make them--are somewhat insulated from economic pressures. While consumers may opt to hold off on purchasing a new car or computer during tough economic times, patients will buy drugs as long as they work. Investing in biotech comes with its own very real set of risks, but for now, at least, it appears to be preferable to other sectors.
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