Analysts at Berenberg Bank provided a report on Biotech sector on the back of Q4 data updates, expecting the sluggish performance of smid-cap biotech sector likely to reverse in Q4 2021 and into 2022.

As scientific discoveries continue to drive innovation in therapeutics, the brokerage believes the fundamentals of the biotech sector remain strong; macro and sector specific factors, such as an increasing appetite from a strong investor base and the easing of the drug pricing rhetoric, provide tailwinds. Analysts at Berenberg expect IPOs, follow-on financings, and M&A activity to pick up, all of which we believe will likely attract investor interest in the sector.