With the notable exceptions of Novo Nordisk A/S (NYSE: NVO) and Eli Lilly & Co. (NYSE: LLY), biotechnology stocks had a rough time attracting investment capital in 2024. Small- and mid-cap biotech stocks struggled to raise capital in a higher-for-longer interest rate environment.
Even large-cap drug companies were impacted as the U.S. Food & Drug Administration (FDA) took a more measured approach to drug approvals, including in breakthrough areas such as gene therapy. The sector is also starting to digest the impact of the Inflation Reduction Act on drug pricing provisions.
