Why biotech is back: IBT portfolio manager’s view

Core Insights - The International Biotechnology Trust (IBT) has recently outperformed due to a resurgence in biotech markets and increased merger and acquisition (M&A) activity [1][2] - The trust's flexible investment strategy, which includes both top-down and bottom-up approaches, has contributed to its long-term outperformance compared to peers [2] Biotech Market Trends - Biotech is regaining momentum after a prolonged downturn, supported by improved performance and renewed investor interest [2] - There is a significant increase in M&A activity driven by large pharmaceutical companies facing major patent expiries, indicating a potential for further deal momentum [3] Investment Opportunities - Attractive valuations are noted in late-stage biotech firms, especially those nearing commercialization, suggesting a favorable investment environment [4] - The increase in IPO activity is seen as a sign that the biotech sector is returning to normal, with strong demand from cash-rich pharmaceutical companies [4]