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23 mins

Biotech Stocks Have Struggled Since 2021. Why They’re Coming Back.

1. PFE and White House settle drug-pricing deal, boosting biotech stocks significantly. 2. Biotech sector showing signs of recovery after years of underperformance. 3. M&A activity is likely as Big Pharma faces patent expirations. 4. Investor sentiment cautious but improving due to potential profit growth in biotech. 5. Structural issues in the sector may be easing, leading to increased investment.

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FAQ

Why Bullish?

The drug-pricing deal with the White House is a positive catalyst. Historical data shows similar regulatory clarity has positively influenced stock performance in the biotech sector.

How important is it?

The article discusses a significant development affecting the biotech sector, directly impacting PFE's market position and stock performance.

Why Long Term?

The potential for mergers and acquisitions indicates sustained growth. As patent cliffs approach, companies like PFE will likely benefit from acquiring innovative pipelines.

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