Key points from article :
The biotech industry is showing renewed signs of strength, with many investors believing this rally could finally endure. According to Wall Street Journal journalist David Wainer, the SPDR S&P Biotech ETF has surged nearly 19% in three months—outpacing the broader market—yet the sector still trades about 40% below its pandemic highs, leaving room for further growth.
Several factors suggest this rebound may be more sustainable than past upswings. The U.S. Food and Drug Administration is approving more new drugs, regulatory uncertainty has eased, and big pharmaceutical companies are stepping up mergers and acquisitions. At the same time, weaker firms from the boom years have fallen away, and progress in advanced fields such as gene therapy is driving new confidence.
Still, Wainer cautions that a lasting recovery depends on stable investment, consistent regulation, strong clinical results, and more selective IPOs. If these conditions hold, biotech may finally be entering a period of steady, long-term growth.
