Over the last four years the biotech sector has been nothing short of unstoppable, with the SPDR S&P Biotech ETF rising 211% while the broad-based S&P 500 rose only 57%.
A rebound in the U.S. economy has certainly played its role, increasing investors’ appetites for growth stocks, but we’ve also witnessed our fair share of clinical advances among both blue chip biotech stocks and select small- and mid-cap biotech stocks, which has extended the rally. The end result has been a clear outperformance for biotech stocks.
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