Myfxtools
  • Login
  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios
No Result
View All Result
  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios
  • Login
Myfxtools
Home News

Biotech M&A Boosts Biotech Stocks

by Myfxtools
December 26, 2023
in News
Share on TwitterShare on Facebook

Biotech stocks are experiencing a resurgence thanks to a surge in biotech mergers and acquisitions (M&A). After a challenging year, both the SPDR S&P Biotech ETF (XBI) and the iShares Biotechnology ETF (IBB) have seen significant improvements. XBI has gained 5.6% this year, while IBB has risen 1.9%. Although these numbers still lag behind the S&P 500’s 24% rise, the recent rally is noteworthy. In just two months, IBB has recovered from a 13% drop to an 18% increase, and XBI has jumped 32% since its 20% decline.

The recent upswing can be attributed to several factors. Biotech companies, particularly smaller ones, often rely on borrowed capital to fund research efforts in pursuit of groundbreaking drugs. Therefore, when the Federal Reserve increases interest rates, these companies struggle as the cost of borrowing money rises. It is no coincidence that the biotech sector’s turnaround coincided with the Fed’s shift from rate hikes to potential rate cuts.

However, another key factor driving the rebound is the return of biotech M&A activity. Bristol Myers’ $4.1 billion acquisition of RayzeBio and AstraZeneca’s $1.2 billion purchase of Gracell are just the latest examples of this trend. In fact, there have been nine biotech acquisitions worth $1 billion or more announced since October. This increased M&A activity bodes well for further gains in the biotech sector.

Katie Stockton of Fairlead Strategies predicts additional upside for XBI. She highlights that the ETF has broken through resistance and shows signs of further momentum after a “flag pattern” on Friday. Furthermore, XBI’s performance relative to the S&P 500 has surpassed its 200-day moving average, indicating potential support for a continued reversal and growth in biotech stocks in the coming months.

However, the critical factor influencing the biotech sector’s future is continued cooperation from the Federal Reserve. As long as the Fed maintains its favorable stance, the outlook for biotech stocks remains promising.

forex ea chart
Would you like to try out trading with an Expert Advisor?
Check Out Best Forex EAs Here
Tags: biotechInvestingM&AMergers and AcquisitionsStocks
Previous Post

Governor Vetoes Bill on Noncompete Agreements in New York

Next Post

Small-Cap Stocks on the Verge of a Breakthrough

Next Post

Small-Cap Stocks on the Verge of a Breakthrough

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

+ 17 = 21

Recent Posts

  • Dividend Funds See Resurgence Amid Rate-Cut Bets, Volatility
  • Fed Stress Tests Clear All Banks Amid Softer Scenarios
  • U.S. Stocks Close Out Second Strong Month with Gains
  • U.S. Court Orders Argentina to Cede YPF Stake
  • Economic Calendar for the Week of June 29th
  • About Us
  • Contact Us
  • Privacy Policy
  • Risk Disclosure
Myfxtools turns raw trade logs into verified dashboards and AI-driven insights - helping traders see, share, and sharpen their edge.

© 2025, Myfxtools. All rights reserved.

AI Strategy Insight is educational and not financial advice.

  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios

© 2025, Myfxtools. All rights reserved.

AI Strategy Insight is educational and not financial advice.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In