2 Biotech Stocks That Could Soar in the Third Quarter
Could a lousy, no-good, rotten year for biotech have a silver lining? It's hard to imagine the market's sentiment about innovative drugmakers getting worse than it already is. The Nasdaq Biotechnology Index has fallen by 20% so far in 2022, and it's more than 30% below the all-time high it set last summer.
Some of the pain biotech investors have felt this year stems from a Food and Drug Administration (FDA) that has been less permissive than usual regarding new drug applications. Since 2017, the regulator has averaged more than 51 new drug approvals per year. We're already halfway through 2022 and the agency has given the green light to just 16 novel new drugs.
This could end up being the FDA's quietest year in memory -- or there could be a slew of new drug approvals around the corner. One thing is for sure: Over the next three months, the agency will make decisions about potential blockbuster treatments from two companies that badly need some wins.
Source Fool.com
