Biotech could be on the verge of a major comeback in 2024. The main reason for this expected turnaround is the high likelihood that the Federal Reserve will start to cut interest rates this year, and continue this trend out till 2026. Lower interest rates would benefit the industry immensely because of the capital-intensive nature of product development in the space.

Another driving force is the surge of innovation in the industry. In 2023, the Food and Drug Administration approved several important new therapies for hard-to-treat indications such as Alzheimer's, obesity, and sickle cell disease. Taken together, these two tailwinds ought to help the industry recover from its two-year slump.

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Source Fool.com