Biotech stocks are coming back. Here's what's driving the sector higher.
Biotech stocks are rebounding after a four-year slump, with the SPDR S&P Biotech ETF up 25% this year. Analysts attribute this resurgence to positive drug trial results, increased mergers and acquisitions, successful drug launches, falling interest rates, easing tariff risks, reduced drug-price control threats, and a stabilizing FDA environment. Notable stocks include UniQure, Praxis Precision Medicines, and Madrigal Pharmaceuticals, which have seen significant gains. Experts believe the sector's strength will continue, making it a favorable time for investors to enter the market.
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