Biotech and healthcare investors hope for rebound following weak 2021

Targeting long-term structural changes

2021 was a difficult year for biotech equities, with the Nasdaq Biotechnology Index giving a full year performance of -0.6% and a total return of 0%, underperforming the S&P 500 benchmark by more than 25 percentage points. It was one of the worst years for the index.

As of 20 January, the Nasdaq Health Care Index was down 23.9% compared to 12 months prior. The industry experienced a lot of volatility throughout last year. Funds such as the L&G Healthcare Breakthrough UCITS ETF finished the year down 8.32%, while BB Biotech reported a net loss of CHF 405m (£327.3m). But biotech investors and analysts are looking to the new year with optimism. Investment in the sector, after all, is about long-term potential - and performance. Covid catalyses investment in biotech with 2022 set to be 'breakout' year Despite a boom in investment, catalysed by t...