Three accomplished and chatty hedge-fund investors don’t buy into the theory that the biotech sector is trading on frothy euphoria. And while individual biotech stocks may go up and down, they say, the industry on a whole sits on very solid ground.
Why? Biology. The drugs being discovered and developed now are based on a deeply better understanding of what causes disease, said Adam Stone, chief investment officer at Perceptive Advisors.
“When you understand the underlying biology of the disease and design clinical programs around that, you’re going to have a much higher success rate rather than when you just threw therapies against the wall,” said Stone, speaking last week at “Biotech Unfiltered” — a STAT Plus subscriber event in New York City.