If it hasn’t caught your eye already, biotech has seen a resurgence of late, with broad based re-ratings seen across the sector, and importantly not just in the US, but here in the UK too. We’re quietly confident that the notable improvement in sentiment is different to the several false dawns we’ve witnessed in the recent past, driven by an easing rates environment, structural tailwinds, and the milder than expected impact from US political headwinds. The US biotech recovery arrived first, with the XBI/NBI up c. 40% YTD (or better yet c. 60% from post the early April market meltdown). But positively, the UK biotech recovery has followed closely, and in our view has scope to outperform the US, with our own SCM biotech index up c. 45% YTD.
