The S&P Select Biotech Index retraced back down to the 50-day moving average as investors digested the initial recovery move. Hotter than expected inflation data has tempered expectations for near term rate cuts. Additional clues into the direction for monetary policy may come at Fed’s upcoming policy meeting (March 19-20).
In the broader market, the weight of high momentum stocks in US equity markets reached all-time high. The momentum factor has led so far in 2024, lifting the S&P to a 17th record high for the year. M&A has been quiet in recent weeks on the biotech front, but favorable regulatory activity continues to showcase innovative new medicines that are advancing forward.
Week Ending March 22nd, 2024:
Biotech: 8 Transactions (1 RM, 2 Follow-Ons, 2 PIPEs, and 3 RDs) totaling just over $1.4B
Med Tech: 1 Transaction (1 Follow-On) totaling just over $300M
2024 YTD:
98 Biotech transactions totaling just over $18B vs. 2023 YTD: 37 Biotech transactions totaling just over $4B
3 Med Tech transactions totaling just over $500M vs. 2023 YTD: 6 Med Tech transactions totaling just over $400M
Private Transactions:
Biotech: 55 US Transactions / 21 European Transactions
Med Tech: 29 US Transactions / 11 European Transactions