As the economy emerges from the series of shocks brought on quickly and unexpectedly when the pandemic hit two and a half years ago, analysts and investors alike are groping to define the “new normal” for financial markets.
This struggle is particularly true for the life science sector, which saw investment stall and then soar during the pandemic’s first years. But by the start of 2022, the Nasdaq Biotech Index was continuing its decline from an all time high posted in August 2021. Private investment followed suit in the second quarter, when venture investment in life science companies tumbled quarter over quarter.
So, what happens next? Some expect the value of life science companies will continue to decline based on numbers in the first half of 2022, but by extending our perspective back a decade, a different potential scenario emerges.