The biotech sector has gone from stock market star to political punchbag in a matter of months and shed value since its frothy peak in July 2015. Between 2010 and 2015 the Nasdaq Biotechnology index surged more than 400 per cent. Last June investors were already nervous about valuations, which had ballooned on the back of a spate of frenzied fundraising. Companies without drugs were being snapped up by venture capital firms and in June Axovant Sciences (AXON:NSQ), an eight-month old company developing a single, unproved Alzheimers drug, became the biggest biotech initial public offering (IPO) on record. The shares almost doubled in a single day when the company debuted.
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