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Ironic boon for biotech
In March 2000, the NASDAQ Composite Index peaks at 5,048. Then, the internet bubble bursts. The exchange crashes, and private equity markets contract through the first quarter of 2003.
Unexpectedly, biotech stocks receive a boost. Apparently, investors fleeing the internet carnage – or at least those who remain able to tolerate a measure of risk – have reinterpreted the uncertain crawl of biotechnology companies through the drug development process. It may be a long, hard slog in the biotech sector, but there is a real pot of gold at the end of the rainbow. The market displays a renewed appreciation of the fact.