It has been another solid week for the biotech sector. The SPDR S&P Biotech (ETF) ($XBI) is headed for another sharply higher finish for the week.
The sector has been helped by some spate of good news for individual biotech companies this week. The biggest news this week of course was the decision on Sarepta Therapeutics’ (SRPT) New Drug Application (NDA) for eteplirsen. The FDA has delayed decision on the DMD drug amid significant political pressure. The drug has safety and efficacy issues but given the unmet need in DMD, the agency is under pressure to approve the drug.
Besides these developments though, the fundamentals for the biotech sector remain weak. The major worry is access to capital markets. In the last month or so, several biotech companies have had to withdraw IPOs.