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Hedge funds scoop up biotech stocks after ‘catastrophic’ declines


&nbsp A Nasdaq index of biotech stocks has tumbled almost a third from its all-time high last August, as hopes about the Covid-19 pandemic boosting the industry gave way to worries about frothy share prices. The sharp sell-off has, in turn, left many companies struggling to raise new funding. Gesualdi’s firm, which manages $1.5bn in assets, recently launched a new fund specifically to focus on opportunities in the life sciences sector. He added that the sector is, on all metrics, “as cheap as it has ever been”. Mergers and acquisitions activity, meanwhile, traditionally a major support for valuations as big pharmaceutical companies look for ways of building their drugs pipeline, has also dried up. The deal count in 2022 has fallen to its lowest level for the opening six months of a year in more than a decade, according to Evaluate Pharma.&nbsp

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