Oncolytics Biotech Inc T.ONC

Broader market helping biotech stocks stage a turnaround.

[Noteable]

Investor's Business Daily - September 15,2022 - "The stock market is struggling, yet scores of biotech stocks are surging like it's a new bull market .. The biotech companies owe their sudden prosperity to a multitude of forces ... Acquisitions by Big Pharma companies, strong earnings and a promising regulatory environment have helped biotech stocks stage a turnaround."

While the broader market has grappled with rising interest rates and inflation, biotech stocks have continued to put out good clinical news — the lifeblood of the industry, says Brad Loncar, chief executive of Loncar Investments. 

The bullish turn for biotech since June has come in lockstep with a downturn for Big Pharma stocks.

Earlier this year, rising interest rates and inflation worries sent investors scrambling for less risky stocks. In the world of medicine, Big Pharma fits that bill. Pharmaceutical companies sell widely used products like cholesterol and cancer drugs. Biotech companies, on the other hand, are working on cutting-edge treatments where losses outnumber game-winning touchdowns.

Then, investors "cared a lot more about businesses that have predictable cash flows today, as opposed to the businesses that have the promise of really big predictable cash flows in the future," Swalla said. "I think biotech and technology stocks suffered the same fate from an institutional investor standpoint."

But now, experts say the paradigm is shifting from a "risk off" environment favoring companies with stable, predictable cash flows to more growth-oriented plays. And when it comes to growth, biotech tends to be among the most eye-catching segments.

Lee Brown, sector lead for health care at research firm Third Bridge, says biotech stocks could actually offer investors a safe haven amid economic uncertainty.

"If you're worried about the economic climate for next year, then being in more idiosyncratic growth sectors is right out of the portfolio manager playbook," he told IBD.

The Biotech Train Isn't Stopping

Against this backdrop, biotechs look particularly enticing for big pharmaceutical companies, which sorely need new innovation, William Blair's Lugo told IBD.

"Pharma needs new pipeline assets and that's where biotech thrives," he said. "The (biotech) sector used to sell off when drug pricing was discussed in broad strokes. But now that we have a framework on drug-pricing regulations and the products targeted, it makes sense there will be more (mergers and acquisitions) in this space."

https://www.investors.com/news/technology/biotech-stocks-notch-blazing-path-2022/

[Noteable]

Bloomberg - September 15, 2022 - " Where to invest $10,000 right now " - " All roads lead to health care..."

[Buckhenry]

the best way to turn $10,000 into $20,000 will be fold it up and put it in your pocket and ride out the upcoming storm.

[Noteable]

OK  ... then why don't you fold it up and take your barker's tent elsewhere. Or is trolling printed on your business card ? 

[Buckhenry]

that reminds me of the liberals that believe in freedom of speech till you disagree with them. I own a pot load of this stock and will say what I want to. I think the market is going to turn very bad for all sectors.

[Noteable]

Well then goodbye to you. Why stick around if you believe in what you say? Those who are intent on trolling always seem to fall back on their freedom to speech even though they have nothing of particular value to say.