The biotech market is frothy. I hesitate to scream “bubble” but it’s getting there. The early warning signs are clear in the way small-cap biotech stocks are running higher on hype and momentum. Common sense and fundamentals no longer seem to matter.

Today’s example: Catabasis Pharmaceuticals (CATB), which announced “positive” results from a failed study for a drug to treat boys with Duchenne muscular dystrophy. The stock is up 55 percent to $4.38 in pre-market trading.

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