2 Incredible Growth Stocks to Buy Right Now
Biotech stocks are susceptible to changes in interest rates, primarily due to the high costs associated with product development. In fact, recent studies show that the average cost of developing a new drug stands at a staggering $2.3 billion.
To manage these substantial costs, biotech companies often turn to loans as a crucial part of their financing strategy. However, the interest on these loans can eat into future free cash flows, making their stocks especially vulnerable to higher rates.
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Source Fool.com
